The information supply chain

Document Sample
The information supply chain Powered By Docstoc
					  The information supply chain




            Mr. Inscoe




FDIC                     XBRL International Conference
  The information supply chain
       The FDIC collects and disseminates
       very large information data sets

       U.S. banking regulators working
       together to modernize information
       collection and dissemination

       Opportunities, challenges and
       ramifications


FDIC                             XBRL International Conference
  The information supply chain



       WHY XBRL ??


FDIC                XBRL International Conference
   The information supply chain



       WHY XBRL ??
 Business rules are well-defined but
 proprietary - an open standard will enable
 enhancements and efficiencies not
 otherwise available

FDIC                         XBRL International Conference
A considerable amount of detailed information is
collected from 8,300+ banks

Banks report up to 1,200 financial items each
quarter

GAAP (measurement and recognition)

There is a long time-series

FDIC has normalized the data for time series
comparisons

The information is organized into large data sets

Published on www.fdic.gov
       WHY XBRL…..

        It’s the next step in a
         continuing evolution



FDIC                     XBRL International Conference
        The FDIC collects and
       disseminates information
The information is used for a variety of purposes

  • Supervise banking organizations
   (on- and offsite)

  • gage compliance with law and regulation

  • manage insurance funds

  • others
FDIC                          XBRL International Conference
        The FDIC collects and
       disseminates information

 Information is disseminated to the public
 • Banks become more competitive
 • Public disclosure – market discipline --
 mitigates moral hazard
 • Information used to benefit public policy

FDIC                          XBRL International Conference
Public Policy Role:


Information is used by
    law makers and
  supervisors to craft
 changes to legislation
     and regulation
  U.S. banking regulators working together
   to modernize information collection and
               dissemination
       • three federal regulators coordinate
       reporting requirements, share data

       • more than 8,300 U.S. banks submit
       extensive financial data each quarter

       • information is validated by the
       regulators before its published

       • today it can take 60 days before all
       information is released

FDIC                               XBRL International Conference
Call Report content is
  determined by the
 interagency Federal
Financial Institutions
Examination Council
      (FFIEC).

Forms and instructions
are available on FDIC’s
     public web site

      www.fdic.gov
The Call Report filed by
  banks with foreign
   offices includes 25
 schedules and 1,200+
          items.
Instructions = 450 pages
 Plus GAAP references
  edit checks = 1,200
Call Reports use GAAP
   for recognition and
measurement purposes,
are structured to require
  that all banks report
   details consistently
    This ensures
 comparability among
     reporters
 The public currently
  downloads about 1
 million Call Report
    pages per year

The information is also
 disclosed in analytical
   systems that allow
   customization and
acquisition of databases

  More than 5 million
 pages of information
being published ID/SDI
  U.S. banking regulators working together
   to modernize information collection and
               dissemination

   • data is validated by the regulators who
   perform nearly 1,200 edit checks to identify
   math and other reporting errors

   • all banks are required to submit reports
   electronically

   • banks purchase software from the private
   sector to prepare and submit reports


FDIC                             XBRL International Conference
  U.S. banking regulators working together
   to modernize information collection and
               dissemination
   A new business model will provide an
   extensible platform for collecting and
   sharing information
   Three U.S. bank regulators
   -FDIC, OCC and Federal Reserve –
   have contracted Unisys and partners to
   create a shared facility to collect
   information

FDIC                         XBRL International Conference
  U.S. banking regulators working together
   to modernize information collection and
               dissemination

   An open standard will facilitate
   comparisons with non-banking
   organizations

   Immediate benefits include more timely
   availability of data

   Over-all cost reduction ultimately

FDIC                          XBRL International Conference
  U.S. banking regulators working together
   to modernize information collection and
               dissemination
   Private sector role continues
   (regulators determine “what” private
   sector determines “how”)

   U.S. Banking agencies will be able to
   perform missions more effectively

   Banking organizations benefit from
   lower costs and more timely
   information
FDIC                         XBRL International Conference
  U.S. banking regulators working together
   to modernize information collection and
               dissemination




How will XBRL contribute?



FDIC                        XBRL International Conference
How will XBRL contribute?
 Business rules in standard format – XBRL -- will
 be published on the Internet

 taxonomies have been created for Call Report
 forms and validation “edits” applied by the
 regulators

 these business rules can be “consumed” by
 vendors and provided in software used to prepare
 Call Reports

 banks will use this software to validate information
 before submitting it to the regulators

FDIC                              XBRL International Conference
How will XBRL contribute?
automated sharing of validation criteria and other
business rules will enable efficiencies not available
in the current process


providing “metadata” in XBRL format will enable
banks to validate data before its submitted


data will be published upon receipt “straight through
processing”

FDIC                              XBRL International Conference
How will XBRL contribute?

Call Report data reported by each bank will be
published in XBRL format to facilitate sharing and
use


 data will no longer depend on software platforms


 intelligence will be built into the process


FDIC                                XBRL International Conference
Reliable information = good
          decisions
  The information supply chain


       Opportunities,
       Challenges,
       Ramifications



FDIC                    XBRL International Conference
The business process re-engineered

  change management critical

 communication with large number of related parties

  new staff roles, responsibilities, and job descriptions
 required to implement the new business model


 ownership of process more widely distributed


 FDIC                               XBRL International Conference
Opportunities, challenges, ramifications

Ramifications for legacy systems
 • the new collection process will provide a feed
 into legacy applications

 • initial impact on numerous “downstream” systems
 minimized

 • ultimate impact - costs and benefits business
 justification


FDIC                              XBRL International Conference
Opportunities, challenges, ramifications

 How will XBRL contribute?
  Other XBRL initiatives

  Work with standards setting organizations --
  BASI efforts identified 225 common concepts

  • new process can be extended to other
  “collections of data”

 •
FDIC                             XBRL International Conference
Opportunities, challenges, ramifications

 How will XBRL contribute?
  Widespread adoption will facilitate connection of
  regulatory data with other information sources


  Enhance transparency




FDIC                              XBRL International Conference
Opportunities, challenges, ramifications

 Public Policy considerations
 • technology advances faster than regulation

 • improvements that provide more transparent
 information may also have implications for privacy

 • everyone should will benefit from lower collection
 costs


FDIC                               XBRL International Conference
       FOCUS GROUP PARTICIPATION

        2:30 – 4:30 Friday, 11-7-2003

        PWC 1420 5th Ave. Suite 400
 6 blocks east of hotel between Pike & Union



 DISCUSSION ON RULE BASES, Jon Wisnieski



FDIC                        XBRL International Conference
  The information supply chain




       Questions ?

FDIC                XBRL International Conference