Building an XBRL Basel II solution in Europe

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Building an XBRL Basel II solution in Europe

• The COREP XBRL project

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AGENDA

• Business case
• European Basel II framework
• COREP concept
• Superset of reports
• Data Matrix
• COREP project
• Architecture
• Test cases
• Project team

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Business case XBRL use on COREP
Supervisor
Bank
Bank operations, controls.
Presentation, Analysis
Report ------------------------------
Reception
Aggregator
XBRL instance
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Business case XBRL use on COREP
COREP XBRL Taxonomy (National Extension)
XBRL implementation
COREP XBRL Taxonomy (Europe)
Bank
Supervisor
Internet
Bank operations, controls.
Presentation, Analysis
Errors
Errors
Basel II App.
Basel II App.
to XBRL
from XBRL
Report ------------------------------
Report ------------------------------
XBRL common
File Transfer (National)
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Business case - Definition

• COREP
• defining a COmmon REPorting framework around the
  solvency ratio for credit institutions and
  investment firms under the European Union Capital
  Requirements.
• (Based on Basel II, Pillar I)
• Committee of European Banking Supervisors
  www.c-ebs.org

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Business case - requirements

• Flexibility each supervisor is allowed to choose
  the scope as well as the level of aggregation of
  information required the framework will allow
  for flexibility also to accommodate for
  differences in the exercise of the national
  options foreseen in the Capital Requirements, for
  instance with reference to the treatment of small
  institutions
• Consistency the same concepts and terminology
  have been used as far as possible
• Standardisation the number of different
  templates has been minimised.

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Business case European framework
Basel II
European Law 9X,XX Basel II compatible
Directives 2000/12 93/6
Transposition into national Legislation
Country 1
Country 3
Country 2
Country 25
National Regulation
FSA 1
FSA 2
FSA 3
FSA 25
National Implementation
Report 2
Report 1 ------------------------------------
Report 3 -----------------------------------------
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--------------------------------------------------
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XBRL challenge!
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COREP concept extension
COREP superset of reports
Large report
Custom report
Medium report
Small report
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COREP concept template
Template
Dimension 2
Dimension 1
Measure
Measure
Measure
Measure
Dimension 3
Dimension 4
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COREP concept Data Matrix
All the dimensions are optional!
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COREP project goals

• Deliverables
• Initial COREP XBRL taxonomy
• Set of non-confidential test cases
• Basic collaborative environment

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COREP Project forecast by January 21st
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COREP project Architecture

• Initial XML/XBRL taxonomy based in COREP
• Technological challenge
• 17 Dimensions
• Exposure type, Exposure classes, Risk weights
• 24 Measure sets
• Exposure value, Capital requirements,
• 26 Templates (Dimensions x Measures)
• SA Capital requirements, IRB Capital
  requirements
• Taxonomy description at www.corep.info
• Simplest solution for the easiest implementation
• Key XBRL gurus are participating in COREP

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COREP project Test cases

• Set of non-confidential test cases
• Anonymous No reputation risk
• Public to be used everywhere
• Early involvement of banks users
• Hands-on experience in COREP
• Quality control of XBRL taxonomies
• As simple as fulfilling a spreadsheet but
• With the intrinsic complexity of Basel II

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COREP project Test cases flow

Anonymous Information
Anonymous Information
COREP-XBRL Group
test_at_corep.info
P R O J E C T M A N A G E M E N T
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Doc File
e-mail
3
1
Doc, Pdf, Files
Excel File
Mapper
COLLABORATING INSTITUTION
Anonymous upload
Excel File
COLLABORATING INSTITUTION
COLLABORATING INSTITUTION
XBRL printout
XBRL Instance
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COLLABORATING INSTITUTIONS SUPERVISORS XBRL
COMMUNITY OTHERS
www.corep.info
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Public Repository
Non compliant test cases
Anonymous Comments
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COREP project Request for testing

• Common framework for the reporting of the
  solvency ratio (COREP) by credit institutions
• To test the COREP XBRL project, institutions are
  invited to participate by providing test data on
  a best effort basis. Please visit
  www.corep.info for details. 
• Who can participate? Any institution that has
  access to data of banking activities, like for
  example, credit institutions, consultant firms or
  any other party interested in participating.
• How to participate? Institutions should provide
  test cases using this spreadsheet
  (www.corep.info/documents/coreptest.zip) and
  attaching all the relevant documentation
  associated. No XBRL knowledge is necessary!
• Collaborating institutions will acquire through
  their participation in this process
• A deeper and better understanding on the COREP
  reporting framework for the solvency ratio.
• A chance to provide comments on how the proposed
  framework works. This may help institutions to
  provide comments on the CEBS consultation paper.
• An early knowledge about the availability in
  their systems of the information that will be
  required in the future for solvency reporting.
• The collaboration in this open process will also
  allow the Institutions to benefit from the
  experiences, comments, suggestions and questions
  posed by other members of the banking industry,
  market participants and XBRL experts.
• Questions? e-mail to test_at_corep.info

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COREP project team

• Basic collaborative environment
• Multinational project team
• 50 participants from 12 countries on kick-off
  workshop
• Different skills
• Supervisor business
• Supervisor IT experts
• XBRL practitioners
• Banks, consultants providers
• University
• Extensive use of Internet tools
• Website www.corep.info
• E-mail list repository on Yahoo Group
• Conference call

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Acknowledgments
Name Country Affiliation Name Country Affiliation
Adrian Abbott UK FSA Ignacio Boixo ES NCB
Alejandro Sanz ES Infodesa Ignacio Hernández-Ros ES Soft.AG
Aliki Kazakopoulo GR NCB J. Emilio Labra ES Prof.Dr.
Annica Lundblad SE PwC Javier Cobo ES Fujitsu
Antonio Menchero ES Soft.AG Javier de Andres ES Prof.Dr.
Antonio Sánchez-Serrano ES NCB Jean-Marie Coudière FR NCB
Arturo Labanda ES PwC Jesus F. Liger ES Azertia
Bryce Pippert USA UBmatrix Johan Giertz SE Bank
César Pérez-Chirinos ES NCB José Luis F. Cuñado ES Infodesa
Charles Hoffman USA UBmatrix Josef Macdonald UK IASB
Cormac McKenna IE Fujitsu Katrin Schmehl DE NCB
Cristina Mena ES inorme Klaus Baumann DE NCB
Daniel D'Amico UK XBRL Krisztina Tamási HU FSA
Daniel Hamm DE NCB Magdalena Llano ES Scholar
David Castro ES Azertia Michele Romanelli IT NCB
Delphine Moreau FR NCB Olivier Servais BE XBRL
Dennis Pels NL NCB Pablo Navarro ES Soft.AG
Don Inscoe USA FSA Pamela Maggiori IT NCB
Emilio Querol ES PwC Panagiotis Voulgaris GR NCB
Fernando Navarrete ES NCB Paolo Milani IT NCB
Fernando Wagener ES NCB Pedro Lorca ES Prof.Dr.
Francesco Canfora IT Bank Phil Walenga USA UBmatrix
Francisco Flores ES Scholar Ron Baremans NL NCB
Frédéric Marié FR NCB Victoria Santillana ES AFI
Gustavo Garcia ES IBM Walter Hamscher USA XBRL
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• Test cases are more than welcome.

Fell free to join the COREP Club!
Thanks for your attention.