Overview of offshore banking units (October 2011)
PRESS RELEASE Release Date: December 2, 2011
Overview of offshore banking units (October 2011)
At the end of October 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$143.312 billion at the end of October 2011, an increase of US$22.686 billion or 18.81% compared to the same period of the previous year. Domestic bank OBUs accounted for US$113.917 billion or 79% of these combined assets, and foreign bank OBUs accounted for US$29.395 billion or 21% of the total.
The turnover of foreign exchange trading by all OBUs in October 2011 was US$29.595 billion consisting of: (1) spot transactions for US$15.380 billion, (2) outright forwards for US$9.391 billion, and (3) foreign exchange swaps for US$4.824 billion.
Based on balance sheet analysis, the OBUs main uses of funds were loans, which accounted for 41% of total assets. The other uses of funds included: (1) deposits with financial institutions and due from related offices, together accounting for 38% of total assets (deposits with domestic financial institutions for 2%, deposits overseas for 4%, deposits with other OBUs for 7%, and due from related offices for 25%), (2) securities investments for 11%, and (3) other assets for 10%. Asia was the main destination for funds, accounting for 64%, followed by America for 25%, Europe for 8%, and other areas for 3%.
The main sources of funds were deposits by financial institutions and due to related offices, which together accounted for 61% of total liabilities (deposits by financial institutions situated locally for 3%, deposits by financial institutions located overseas for 6%, inter-OBU deposits for 7%, and due to related offices for 45%). 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 13%. In terms of the area of origin, Asia accounted for 68%, followed by America for 19%, Europe for 10%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of October 2011 was US$59.341 billion, of which 99.9% was extended to overseas clients, including medium and long-term loans for US$36.194 billion and short-term loans for US$23.106 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 October 2011 was US$31.757 billion, including: (1) collection, remittance, and accounts receivable factoring for US$30.356 billion, and (2) L/C negotiation for US$1.401 billion. The volume of import related banking business of all OBUs was US$27.435 billion.
The turnover of derivative products trading by all OBUs in October 2011 was US$30.109 billion, including: (1) options for US$16.112 billion, (2) futures for US$13.228 billion, (3) credit derivatives for US$350 million, (4) interest rate swaps for US$334 million, (5) margin account trading for US$49 million, (6) commodity swaps for US$23 million, and (7) commodity forward contracts for US$13 million.
Note: The next dissemination will be made at 16:20 p.m. on January 3, 2012.