COREP and FINREP Start of real XBRL reporting in the European ...

15th XBRL International Conference COREP and FINREP: Start of real XBRL reporting in the European Banking Supervision Committee of European Banking Supervisors XBRL Network Daniel Hamm Katrin Schmehl Munich, 2007-06-06 Agenda  Short Summary of COREP  Short Summary of FINREP  COREP and FINREP in Europe Today  Status and Future of the Projects Agenda  Short Summary of COREP  Short Summary of FINREP  COREP and FINREP in Europe Today  Status and Future of the Projects COREP Background Basel II Directives 2000/12 & 93/6 European Law 9X,XX% Basel II compatible Transposition into national Legislation Country 25 FSA 25 National Regulation National Implementation Country 1 FSA 1 Country 2 FSA 2 Country 3 FSA 3 Report 1 ---------------------------------- Report 2 Report 3 ------------------------------------------------------------------------------------------------------------------------------------------------------------- Report 25 ------------------------------------------------------------------------------------------------------------------------------------------------------------- XBRL challenge! 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 March 2006: COREP Taxonomy 1.0 October 2006: Start of national extensions 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 COREP Taxonomy 1.2 (official release to build national extensions) 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 Agenda  Short Summary of COREP  Short Summary of FINREP  COREP and FINREP in Europe Today  Status and Future of the Projects 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) 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 project‘s needs Agenda  Short Summary of COREP  Short Summary of FINREP  COREP and FINREP in Europe Today  Status and Future of the Projects COREP/FINREP in Spain Spain SIIF: XBRL system of the Bank of Spain   2005: System of interchange of financial information (SIIF) 2006: SIIF is improved to support the New Basel’s Accord Solvency Information Only XBRL  XBRL is the only format allowed, but providing a translation tool  Entities to consider providing XBRL directly  Translation tool must be maintained  National Bank Financial entity Financial entity Financial entity 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 Javascript XSLT Javascript XSLT HTML XBRL XSLT Processor XSLT Financial Entity COREP/FINREP in the Netherlands The Netherlands e-Line: generic solution for reporting of the Bank of the Netherlands National Statistics Bureau Departments Data-entry Internet Plausibility Data warehouse ECB Data transmission Quality checks Storage Publication BIS Eurostat XML XBRL Mathematical Government 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 Sample data entry form of a COREP template 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 COREP/FINREP in Belgium Belgium 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 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) Sample data entry form of a COREP template 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 ==> Why not widen the use of CSSR to other authorities in charge of statistical & prudential data collection? Back to EUROPE Agenda  Short Summary of COREP  Short Summary of FINREP  COREP and FINREP in Europe Today  Status and Future of the Projects How to support the national developments? Workshops: 7 editions * 70+ attendees Core Team: Supervisors DE, ES, IT, BE, GR Non Supervisors + 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? How to enhance XBRL for the needs of the European supervisors? Workshops: 7 editions * 70+ attendees Core Team: Supervisors DE, ES, IT, BE, GR Non Supervisors + Questions Thank you for your attention! Time for your questions!