Overview of offshore banking units (November 2011)
PRESS RELEASE Release Date: January 3, 2012
Overview of offshore banking units (November 2011)
At the end of November 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$145.232 billion at the end of November 2011, an increase of US$26.807 billion or 22.64% compared to the same period of the previous year. Domestic bank OBUs accounted for US$114.444 billion or 79% of these combined assets, and foreign bank OBUs accounted for US$30.788 billion or 21% of the total.
The turnover of foreign exchange trading by all OBUs in November 2011 was US$22.616 billion consisting of: (1) spot transactions for US$12.475 billion, (2) outright forwards for US$5.956 billion, and (3) foreign exchange swaps for US$4.185 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 39% of total assets (deposits with domestic financial institutions for 1%, deposits overseas for 5%, deposits with other OBUs for 8%, and due from related offices for 25%), (2) securities investments for 11%, and (3) other assets for 9%. Asia was the main destination for funds, accounting for 65%, followed by America for 24%, 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 62% of total liabilities (deposits by financial institutions situated locally for 3%, deposits by financial institutions located overseas for 7%, inter-OBU deposits for 8%, and due to related offices for 44%). 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 12%. In terms of the area of origin, Asia accounted for 69%, followed by America for 19%, Europe for 9%, and other areas for 3%.
The total value of all outstanding loans made by OBUs at the end of November 2011 was US$60.008 billion, of which 99.9% was extended to overseas clients, including medium and long-term loans for US$36.769 billion and short-term loans for US$23.198 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 November 2011 was US$34.255 billion, including: (1) collection, remittance, and accounts receivable factoring for US$32.827 billion, and (2) L/C negotiation for US$1.428 billion. The volume of import related banking business of all OBUs was US$30.002 billion.
The turnover of derivative products trading by all OBUs in November 2011 was US$33.946 billion, including: (1) futures for US$16.625 billion, (2) options for US$16.510 billion, (3) credit derivatives for US$549 million, (4) interest rate swaps for US$186 million, (5) margin account trading for US$66 million, (6) commodity forward contracts for US$6 million, and (7) commodity swaps for US$4 million.
Note: The next dissemination will be made at 16:20 p.m. on February 8, 2012.