Overview of offshore banking units (September 2011)
PRESS RELEASE Release Date: November 2, 2011
Overview of offshore banking units (September 2011)
At the end of September 2011, there were 61 offshore banking units (OBUs) including 36 domestic banks and 25 foreign banks. The combined assets of all OBUs amounted to US$137.893 billion at the end of September 2011, an increase of US$21.693 billion or 18.67% compared to the same period of the previous year. Domestic bank OBUs accounted for US$108.740 billion or 79% of these combined assets, and foreign bank OBUs accounted for US$29.153 billion or 21% of the total.
The turnover of foreign exchange trading by all OBUs in September 2011 was US$26.181 billion consisting of: (1) spot transactions for US$13.101 billion, (2) outright forwards for US$9.072 billion, and (3) foreign exchange swaps for US$4.008 billion.
Based on balance sheet analysis, the OBUs main uses of funds were due from related offices and deposits with financial institutions, which together accounted for 39% of total assets, including: (1) deposits with domestic financial institutions for 2%, (2) deposits overseas for 4%, (3) deposits with other OBUs for 7%, and (4) due from related offices for 26%. The other uses of funds included: (1) loans for 42%, (2) securities investments for 11%, and (3) other assets for 8%. Asia was the main destination for funds, accounting for 62%, followed by America for 26%, Europe for 8%, and other areas for 4%.
The main sources of funds were due to related offices and deposits by financial institutions, which together accounted for 63% of total liabilities, including: (1) deposits by financial institutions situated locally for 3%, (2) deposits by financial institutions located overseas for 7%, (3) inter-OBU deposits for 7%, and (4) due to related offices for 46%. The other sources of funds included: (1) deposits by non-financial institutions accounting for 26% of total liabilities, and (2) other liabilities plus the equity of head office for 11%. In terms of the area of origin, Asia accounted for 70%, followed by America for 19%, Europe for 9%, and other areas for 2%.
The total value of all outstanding loans made by OBUs at the end of September 2011 was US$58.046 billion, of which 99.9% was extended to overseas clients, including medium and long-term loans for US$32.295 billion and short-term loans for US$25.710 billion. The remaining 0.1% was extended to local clients for US$41 million.
The volume of export related banking business of all OBUs in September 2011 was US$34.362 billion, including: (1) collection, remittance, and accounts receivable factoring for US$32.905 billion, and (2) L/C negotiation for US$1.457 billion. The volume of import related banking business of all OBUs was US$31.195 billion.
The turnover of derivative products trading by all OBUs in September 2011 was US$36.755 billion, including: (1) futures for US$19.817 billion, (2) options for US$15.841 billion, (3) credit derivatives for US$596 million, (4) interest rate swaps for US$367 million, (5) margin account trading for US$88 million, (6) commodity forward contracts for US$23 million, and (7) commodity swaps for US$23 million.
Note: The next dissemination will be made at 16:20 p.m. on December 2, 2011.