The combined assets of all OBUs amounted to US$86.457 billion at the end of October 2007, a new record, and an increase of US$16.646 billion or 23.84% compared to the same period of the previous year.

Domestic bank OBUs accounted for US$63.409 billion or 73% of these combined assets, and foreign bank OBUs accounted for US$23.048 billion or 27% of the total.

The turnover of foreign exchange trading by all OBUs in October 2007 was US$9.793 billion consisting of: spot transactions for US$5.582 billion; outright forwards for US$2.261 billion; and foreign exchange swaps for US$1.950 billion.

The Central Bank explained that:

"Based on balance sheet analysis, the OBUs main sources of funds were due to related offices and deposits by financial institutions, which accounted for 60% of total liabilities including (1) due to related offices for 52%, (2) deposits by financial institutions situated locally for 5%, (3) inter-OBU deposits for 1%, and (4) deposits by financial institutions located overseas for 2%. The other sources of funds included deposits by non-financial institutions accounting for 31% of total liabilities, and other liabilities plus the equity of head office for 9%. In terms of the area of origin, Asia accounted for 68%, followed by America for 22%, Europe for 8%, and other areas for 2%."

"The main uses for funds were due from related offices and deposits with financial institutions, which accounted for 51% of total assets including (1) due from related offices for 30%, (2) deposits overseas for 17%, (3) deposits with other domestic financial institutions for 3 %, and (4) deposits with domestic OBUs for 1%. The other uses of funds included (1) loans for 27%, (2) security investments for 15%, and (3) other assets for 7%. Asia was the main destination for funds, accounting for 56%, followed by America for 25%, Europe for 17%, and other areas for 2%."

It continued:

"The total value of all outstanding loans made by OBUs at the end of October 2007 was US$23.462 billion, of which 96% was extended to overseas clients, including long-term loans for US$13.991 billion and short-term loans for US$8.564 billion. The remaining 4% was extended to local clients for US$907 million."

"The volume of export related banking business of all OBUs in October 2007 was US$21.871 billion including (1) export collection, export remittance, and accounts receivable factoring for US$20.362 billion and (2) export negotiation for US$1.509 billion. The volume of import related banking business of all OBUs was US$20.370 billion."

"The turnover of other derivative products trading by all OBUs in October 2007 was US$25.399 billion including (1) financial futures for US$16.742 billion, (2)options for US$7.941 billion, (3) credit derivatives for US$250 million, (4) foreign currency interest rate swaps for US$239 million, (5) margin account trading for US$140 million, (6) equity swaps for US$64 million, (7) commodity swaps for US$21 million, and (8) cross currency swaps (not involving the NT dollar) for US$2 million."

The next such analysis of the sector will be published on January 8, 2008.