COREP%20and%20FINREP:%20%20Start%20of%20real%20XBRL%20reporting%20in%20the%20European%20Banking%20Supervision

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COREP and FINREP Start of real XBRL reporting
in the European Banking Supervision
15th XBRL International Conference

• Committee of European Banking Supervisors XBRL
  Network
• Daniel Hamm
• Katrin Schmehl

Munich, 2007-06-06
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Agenda

• Short Summary of COREP
• Short Summary of FINREP
• COREP and FINREP in Europe Today
• Status and Future of the Projects

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Agenda

• Short Summary of COREP
• Short Summary of FINREP
• COREP and FINREP in Europe Today
• Status and Future of the Projects

4
COREP Background
European Law 9X,XX Basel II compatible
Transposition into national Legislation
National Regulation
National Implementation
XBRL challenge!
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COREP Dates Facts

• COREP COmmon REPorting
• Initiative of the Committee of European Banking
  Supervisors (CEBS, http//www.c-ebs.org)

End of 2004 Decision of CEBS to use XBRL
July 2005 First Public Working Draft of
Dimensions
October 2006 Start of national extensions
March 2006 COREP Taxonomy 1.0
2004
2005
2006
time
February 2005 First European Banking Supervisors
XBRL Workshop (Madrid) Start of taxonomy
development
September 2005 III European Banking Supervisors
XBRL Workshop (Brussels) First presentation of
results to supervisors
September 2006 Dimensions 1.0 Recommendation CORE
P Taxonomy 1.2 (official release to build
national extensions)
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COREP Dates Facts

• Taxonomies represent 18 templates
• Overview and group solvency details (2)
• Credit Risk (7)
• Market Risk (6)
• Operational Risk (3)
• Current taxonomy version 1.2.4 (dated
  2007-04-20)
• Several European Banking Supervisors XBRL
  Workshops took place (latest was the VII Workshop
  and took place in Munich last month)
• Official Website http//www.corep.info

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Agenda

• Short Summary of COREP
• Short Summary of FINREP
• COREP and FINREP in Europe Today
• Status and Future of the Projects

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FINREP Dates Facts

• FINREP FINancial REPorting
• FINREP XBRL representation of the Financial
  Reporting Framework of the CEBS
• FINREP is designed for credit institutions that
  use IAS / IFRS (International Accounting
  Standards / International Financial Reporting
  Standards)
• ?FINREP taxonomy is an extension of the IFRS-GP
  taxonomy (developed by the International
  Accounting Standards Committee Foundation -
  IASCF)
• FINREP Taxonomy 1.0 dated 2006-09-30
• Current version 1.2 (dated 2006-12-21)

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Goals of COREP and FINREP

• At first, the goal was the pure development of
  working taxonomies
• Early need to integrate European supervisors
  (end-users) in the development process
• Three different types of goals now
• Technical goal
• Allocation of taxonomies
• Business goal
• Encourage / support national supervisors in their
  XBRL adoption
• Use of synergy effects
• XBRL goal
• Create awareness for XBRL capabilities and
  benefits across Europe
• Help in developing the standard according to the
  projects needs

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Agenda

• Short Summary of COREP
• Short Summary of FINREP
• COREP and FINREP in Europe Today
• Status and Future of the Projects

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COREP/FINREP in Spain
Spain
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SIIF XBRL system of the Bank of Spain

• 2005 System of interchange of financial
  information (SIIF)
• 2006 SIIF is improved to support the New Basels
  Accord Solvency Information

National Bank

• Only XBRL
• XBRL is the only format allowed, but providing a
  translation tool
• Entities to consider providing XBRL directly
• Translation tool must be maintained

xbrl
xbrl
xbrl
Financial entity
Financial entity
Financial entity
txt
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Services being provided

• Providing helper services
• Instance validation service
• Instance visualizing service
• Taxonomy dictionary browser
• Taxonomy browser
• Spanish COREP
• Commercial XBRL engine for validation
• Visualization based on XSLT, but using the API of
  the XBRL engine
• Bank of Spain
• One entity and one period per instance document

Front-end
XSLT
Javascript
XSLT
Javascript
Financial Entity
XSLT Processor
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COREP/FINREP in the Netherlands
The Netherlands
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e-Line generic solution for reportingof the
Bank of the Netherlands
National Statistics Bureau
Departments
Data-entry
Internet
Plausibility
Data warehouse
ECB
Data transmission
Quality checks
BIS
Publication
Storage
Eurostat
XML
Mathematical
Government
XBRL
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e-Line Support for reporting entities

• Overview of reports DNB to be delivered
• Fill out reports
• data-entry
• Importing XML, XBRL
• Quality checks technical and business rules
• Export to Excel / PDF
• Multi-user handling

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Sample data entry form of a COREP template
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e-Line support for interested national banks in
Europe

• e-Line provides
• an web-based tool
• possibilities to adjust the design to the
  corporate design of the national bank
• possibilities to create own reporting forms
• support for any language
• an overview of the reporting progress
• data storage
• back-up facilities
• adjustments on reports
• security (PKI Public Key Infrastructure)
• interfaces to back office systems

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COREP/FINREP in Belgium
Belgium
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CSSR Central Server for Statistical Reporting

• Requirements
• User friendly for small companies filling in
  statistical forms
• Full automation capabilities for big companies
  using XBRL, XML, file transfer in a complex IT
  environment with a very high level of security

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CSSR Central Server for Statistical Reporting

• The solution
• a single IT software tool
• implemented on server(s) connected to the
  Internet
• dedicated to all kinds of statistical and
  prudential reports
• used by all kinds of reporting agents (financial,
  non-financial, public, private, big or small
  companies)
• to report to different authorities (central bank,
  supervisors, NSI)

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Sample data entry form of a COREP template
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CSSR support for interested national banks in
Europe

• single software
• multi-reporting agents multi-users
• multi-domains, multi-surveys, multi-forms based
  on XBRL
• multilevel functionalities (small or big
  companies)
• multilevel security
• multilingual
• multi-authorities (National Bank, Supervisor,
  National Accounts)
• only used by Belgian authorities
• gt Why not widen the use of CSSR to other
  authorities in charge of statistical prudential
  data collection?

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Back to EUROPE
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Agenda

• Short Summary of COREP
• Short Summary of FINREP
• COREP and FINREP in Europe Today
• Status and Future of the Projects

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How to support the national developments?
Weekly Conf. Call Yahoogroups 300
Workshops 7 editions 70 attendees
Core Team Supervisors DE, ES, IT, BE, GR Non
Supervisors
Website, News Communication
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How to enhance XBRL for the needs of the European
supervisors?

• Formula Linkbase
• Formulas should be part of the taxonomy.
• Calculation linkbase is too limited for
  supervisory needs.
• Different national solutions for same problem.
• Integration in national taxonomy-extensions
• Development at application-level
• Versioning
• Documentation on changes
• on the base taxonomies
• on different versions of the extension taxonomies
• between two extension taxonomies?

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How to enhance XBRL for the needs of the European
supervisors?
Weekly Conf. Call Yahoogroups 300
Workshops 7 editions 70 attendees
Core Team Supervisors DE, ES, IT, BE, GR Non
Supervisors
Website, News Communication
Participation in the Working Groups of XBRL
International
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Questions

• Thank you for your attention!

Time for your questions!