Taiwan's OBU assets up 14.98% to US$69.593 B. as of Nov. 2004

Taipei, Jan. 18, 2005 (CENS)--The aggregate assets recorded by Taiwan's offshore banking units (OBUs) totaled US$69.593 billion as of the end of November 2004, up 14.98% or US$9.066 billion from the corresponding figure of 2003, according to statistics compiled by Central Bank of China (CBC) in Taiwan.

Of the total assets, the OBUs operated by domestic banks accounted for US$47.935 billion or 69%, and those of foreign banks commanded US$21.658 billion or 31%. At the end of November, there were a total of 70 OBUs operating in Taiwan, with 42 run by domestic banks and 28 by foreign banks.

The same tallies showed that deposits from financial institutions and interbank dealings remained the major source of operating funds of OBUs, commanding a lion's share of 62% of the OBU liabilities, including 7% from domestic institutions, 4% from overseas financial institutions, 47% from interbank dealings, and 4% from OBUs. Deposits from non-financial institutions accounted for 27%, and the remaining 11% were liabilities and equities of the headquarters of the financial institutions,

Asia was the major source of the deposits at Taiwan's OBUs, taking a majority share of 67%, followed by America with 21%, and Europe 8%. The other areas made up the remaining 4%.

On the other hand, about 53% of the OBU funds were deposited at financial institutions or for interbank dealings as well. In addition, some 26 of the funds were extended as loans to enterprises, 10% used for bond investments and 11% for other assets. Asia absorbed 68% of the funds, America 19%, Europe 11%, and other areas 3%.

As of the end of November, total outstanding foreign-currency loans extended by OBUs in Taiwan came to US$18.27 billion. Of such loans, 85% was extended abroad, including US$6.861 billion in short-term loans and US$8.642 billion in medium- and long-term loan. The remaining US$2.767 billion or 15% was extended to domestic enterprises.

In November alone, export-related foreign exchange business handled by OBUs amounted to US$8.096 billion, and import-related forex deals posted at US$6.948 billion.

In the same month, foreign exchange transactions concluded by OBUs amounted to US$12.795 billion, including US$7.554 billion in spot trade, US$3.083 in outright forwards, and US$2.158 billion in forex swaps.

Of the derivative financial deals handled by OBUs, options commanded the largest portion at US$3.628 billion, followed by financial futures with US$940 million, and interest rate swaps with US$275 million. Besides, other derivative financial products handled by OBUs involved lower trading value, including forward rate agreement (FRA) at US$20 million, credit derivative products at US$13 million and margin trading at US$10 million.