COREP & FINREP XBRL projects update

Ignacio BoixoCOREP XBRL Project CoordinatorXBRL Spain. ManagerBank of Spain. Int’l IT Projects Mngr.

V European Banking Supervisors XBRL Workshop

Madrid, 2006-05-18

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Agenda

1. CEBS public statement about XBRL

2. XBRL implementation model

3. Project timeframes

4. COREP & FINREP today

5. Next Steps

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CEBS public statement about XBRL

8. XBRL

National supervisory authorities are free to decide on the technical aspects involved in implementing the framework. CEBS considers, however, that XBRL can be a helpful tool in constructing a standardised European reporting system. CEBS will develop an XBRL taxonomy, which will be made available without cost to national authorities and supervised credit institutions.

CEBS December 2005.

FRAMEWORK FOR CONSOLIDATED FINANCIAL REPORTING

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Basel II, IAS/IFRS …

EC 1606/2002, 12/2000, 6/93…

Country 1

FSA 1

Report 2Report 1

------------------------------------

Country 3Country 2 Country 25

FSA 2 FSA 3 FSA 25

Report 25

----------------------------------------------------------------------------------------------------------------------------------------------------------------

Report 3

----------------------------------------------------------------------------------------------------------------------------------------------------------------

National Regulation

Transposition into national Legislation

European Law9X,XX% best practices + EU requirements

National Implementation

XBRL challenge!

Flexibility Principle

Global best practices

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Pillar ICapital

COREP TemplatesToday

Pillar ICapital

COREP concept: extension

Pillar II Supervision

Pillar IIIMarket

COREPvs. Pillars

COREPvs. Pillars

Future templates?Future templates?

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COREP concept: extension

Largereport

Mediumreport

Smallreport

Customreport

COREP superset of reports

COREP superset of reports

Depending on the national requirements each country will determine a framework and a level of detail.

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COREP concept: template

Dimension 2

Dimension 1

Dimension 3

Dimension 4

Measure MeasureMeasure Measure

Template:

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COREP concept: Data Matrix

EXPOSURE TYPES

STANDARD APPROACH CAPITAL REQUIREMENTS

EXPOSURE CLASSES

All the dimensions are optional!

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Customisation of Labels: I

meaningful names of the items to be reported are used in reports to hide the technical name

English labels German labels

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CEBS XBRL: IT implementation model

Bank

Bank Management

OperationsCounterparties

Collateral…

Report

XBRL------------------------------

Supervisor

Supervision

ReportsOther data

…

to XBRL

Taxonomy XBRL

Errors

Internet

fromXBRL

INDUSTRY

Didactic model for explanatory purposes only

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CEBS XBRL EU: implementation model

Bank

Bank Management

OperationsCounterparties

Collateral…

Report

------------------------------

Supervisor

IS Supervisory

ReportsOther data

……

Presentation, Analysis…

Bank operations, controls….

Basel IIIAS/IFRS

App.

to XBRL

from XBRL

Basel IIIAS/IFRS

App.

Report

------------------------------

File Transfer (National)

XBRL (Europe)

XBRL (National)

ErrorsErrors

Internet

XBRL National implementation

XBRL core

Basel IIIAS/IFRS

Basel IIIAS/IFRS

Didactic model for explanatory purposes only

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COREP implementation: Banks

Bank 1

International Bank

ASP provider

Banking Supervisor

Stock Ex. Supervisor

Country Z Supervisor

Bank 2

Bank 3

Bank n

XBRL Reports

Basel II

IAS/IFRS

Multiple implementation approaches:

• Small banks may use Application Service Provider -ASP- model, outsourcing technical complexity

• Banks may report all to all the Supervisors: Basel II & IFRS, Banking & Stock Exchange…

• International Banks may reduce supervisory burden when reporting to different countries

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Opportunity window

Too early

Too late

Operational:Basel IIIFRS/IAS•••

Establishing:CEBSXBRL EU•••

20042003 2005 2006 20072002 2008

Today!

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COREP & FINREP prerequisites completed √

13 Jan. 2006 CEBS GUIDELINES ON COMMON REPORTING CEBS has published guidelines on a common reporting framework (COREP) to be used by credit institutions and investment firms when they report their solvency ratio to supervisory authorities under the Capital Requirements Directive.

16 Dec. 2005 CEBS GUIDELINES ON FINANCIAL REPORTING CEBS has published guidelines establishing a standardised financial reporting framework (FINREP) for credit institutions operating in the EU.

31 Dec. 2005 Dimensions 1.0 (Candidate Recommendation) The Dimensions 1.0 Specification is a modular, optional extension to the XBRL 2.1 Specification which allows XBRL taxonomy authors to define and restrict dimensional information.

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COREP steps

Organization

04-09-23

Preliminary Workshop

05-04-25

Boston Conference

05-09-15

3rd Workshop

05-11-07

Tokyo Conference

05-04-18

2nd

Workshop

05-02-17

Kick off 1st Workshop

Proof of concept

Preliminary version 0.6.1

Tools

Production version 1.0

06-01-30

4th

Workshop

06-05-18

5th

Workshop

Tuning

06-03-1005-02-17

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FINREP steps

06-01-30

Kick off 4th Workshop

Internal version 0.24

Public version 0.24

06-09-XX

6th

Workshop

06-05-18

5th

Workshop

Tuning

Production version 1.0

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COREP & FINREP TODAY

XBRL Tools:

Updated to Dimensional Specification.

Please ask for demos at the exhibition area.

COREP:

Taxonomy & Documentation publishedPublic & Quality review => Next Improvements?Starting International acknowledgment

FINREP:

Project team working actively.

Results in this Workshop.

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Who is who

Chairmanship Danièle Nouy, CEBS Chair, Secretary General French Banking Commission José María Roldán, CEBS past Chair, Director General Bank of Spain

Pierre-Yves Thoraval, COREP past Chair, French Banking Commission

Marc Pickeur, EGFI reporting Chair, Belgium Banking Commission

Kurt Ramin, XBRL Int’l Chair, International Accounting Standards Committee

Federico Florez, XBRL Spain CEO, Bank of Spain CIO

FINREPGiancarlo Pellizzari – Belgium CBFA

Patrick Amis – French Banking Commission

Jacobo Varela – Bank of Spain

Mark Creemers - National Bank of Belgium

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COREP project team

Full time developers

Katrin Schmehl – Bundesbank

Daniel Hamm – Bundesbank

Panagiotis Voulgaris – Bank of Greece

Magdalena Llano – XBRL SpainSupport

Ignacio Boixo – Bank of Spain Project Coordination

Michele Romanelli – Bank of Italy Data Modeling

Fernando Wagener - Bank of Spain Data Input & Mapping

Walter Hamscher – PwC & XBRL Strategic Consultant

Fernando Navarrete - Bank of Spain Business Relationship

Olivier Servais – XBRL in Europe Workshops & dissemination

Ignacio Hernández-Ros – XBRL Int’l Dimensions & Implementation

And many many more….

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Collaborative Tools

www.corep.info www.finrep.info

http://finance.groups.yahoo.com/group/XBRL-COREP/

Conference Call every Thursday. Time: 16:00 CET, 15:00 London, 10:00 Boston, 07:00 SeattlePhone number: +34 91 398 3857 Conference ID: 563 483

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CEBS XBRL flows

CEBS XBRL

Development & Maintenance

Business

National Supervisor Project Office

Support

Guidance Requirements

Solutions

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COREP Intellectual Property

Copyright: The COREP & FINREP XBRL Project version 1.0 deliverables will be protected by copyright, owned by the CEBS Secretariat Ltd.

Supporting the royalty free use of XBRL on COREP & FINREP, an Intellectual Property Strategy has been implemented:Pre-emptive measure in the IT world.

Trademark: CEBS Secretariat Ltd. has applied for the names “COREP” & “FINREP”

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Challenge

The real challenge is not the development of the taxonomy; a group of enthusiastic people is ready to carry out this job, as it has been demonstrated.

The XBRL coordination among Supervisors is the critical success factor.

The real challenge is the real XBRL implementation

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Thanks - Obrigado - Merci - Gracias Danke - Grazie - Ευχαριστίες - Спасибо

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