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WStrohbachIBoixoCEBS COREP FINREP XBRL Project

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WStrohbachIBoixoCEBS COREP FINREP XBRL Project Powered By Docstoc
					Evolution of COREP and
FINREP


Presented at the:

IX European Banking Supervisors
XBRL Workshop & Tutorial
In: Paris
On: 30th September 2008

By: Wolfgang Strohbach
Member of CEBS XBRL Network




                                  1
Outline

 1. CEBS???

 2. FINREP vs. COREP

 3. EU-wide reporting formats

 4. Streamlining & Harmonization project

 5. One-entry point



                                           2
1. CEBS in the Lamfalussy process: 3 levels

                          Level 1:     The Commission
                                       European Parliament
                                       Council
           Legislation

           Policy and           Level 2:       European
                                               Banking
         implementation                        Committee
           measures


                                           Level 3:    CEBS
       Convergence and
     supervisory cooperation

                                                              3
1. CEBS in the EU: our role
                   Council                                      European                                           European
                                                               Commission                                         Parliament


             EFC-              FSC¹                 EBC¹                                                 Economic and Monetary
                                                                                                         Affairs Committee (ECON)
             FST¹                                   EFCC¹



                                                                     Advice/accountability
                                                                     coordination




                                                                                                                           CEIOPS3

            European Central
            Bank (ECB)
                                                               CEBS²
                                                                                         Level-3 coordination
                                                                                                                             CESR3

            Banking                           Co-operation              Accountability
            Supervision
            Committee (BSC)

                                                                                                                            IWCFC3
                                                         Inter-Institutional
                                                          Monitoring Group


  EBC European Banking Committee
  EFCC European Financial Conglomerates Committee
  EFC Economic and Financial Committee
                                                                                          ¹Finance ministries (FST also central banks)
  FSC Financial Services Committee
                                                                                          ²Supervisors and Central Banks
  FST Financial Stability Table
                                                                                          ³Supervisors
  IWCFC Interim Working Committee on Financial Conglomerates




                                                                                                                                         4
2. FINREP (Financial Reporting)
 What is:                             Structure:
 consolidated financial information     – core information
  collected by national                 – non-core information
  supervisors and based on
  endorsed IFRSs.                       – additional quantitative and
                                          qualitative information
                                          (national discretion)
 First released:
 December 2006
                                      Implementation in EU:
 Objective:
                                        – 21 countries
 Increase comparability of
                                        – mainly core information
   financial information delivered
   by banks to supervisors
   (convergence)
                                                                        5
2. COREP (Common Reporting)
What is:                           First released:
Solo and consolidated prudential   January 2006
 information collected by
 national supervisors and based    Structure:
 on CRD (Basel II)
                                     – core information (homogen)
Objective:                           – standardised supplemental
                                       information (flexible)
• develop a common language
  for communication in the         Implementation in EU:
  context of a common European
  framework (convergence)            – 27 countries

                                     – 2/3 of content



                                                                    6
2. COREP Basel II


                                    Three
                                    Pillars

                           I – Capital        II - Supervisory   III - Market
                         requirements         review process      discipline

                         Risk weighted        Definition of
                            assets              capital

                               Operational             Market
           Credit risk
                                  risk                  risks

                        Internal
Standardised
                    Ratings-based
  Approach
                      Approach




                                                                                7
3. Assessment Study (2007)
                                       COREP                             FINREP

                              •Significant level of
                                                             •High commonality in core
                              commonality, high in core
                                                             templates
Outcome of assessment study   templates
                                                             •Low use of non-core
                              •More burdensome than US
                                                             templates
                              Basel II reports.

                                                            •Commonality of data
                                •Commonality of data
  Sources for the exercise                                  •User-test
                                •User-test
                                                            •Analysis public Financial St.


Reasons for low commonality      national discretions         IFRS vs. National GAAP


                                         3 operational networks on reporting:
                                         •FINREP network
      Consequences                       •COREP network
                                         •XBRL network
                                         Harmonization & Streamlining project



                                                                                             8
3. EU-wide reporting format

  “move towards EU-wide reporting formats so as to
 have a single set of data requirements and reporting
            dates.” (ECOFIN conclusions)


   COREP
                                        EU-wide
                                       reporting
                                        formats
  FINREP


 Harmonised but                       Hard convergence
    flexible

                                                         9
3. Hard convergence
•Scope:
 IAS/IFRS: consolidated and sub-consolidated reports (FINREP)

 Pillar 1: consolidated, sub-consolidated and solo reports (COREP)
•Hard convergence on data definitions:
 Use of different accounting frameworks (IFRS vs. National GAAP)

 Different CRD implementation
    Call for Advice on National Discretions (advise by CEBS to EU Com)
    Implementation Questions (publication on CEBS’ website)
    CRD Transposition Questions (EU Commission)

 Differences in supervisory approaches
    EGFI Queries
    Seminars and workshops

                                                                          10
4. Streamlining project
•Maximum data model: so as no additional data requirements on
financial reporting and Pillar 1 will be imposed
•Based on need-to-know basis for supervisory purposes:
 • the ongoing user-test on FINREP and COREP will determine the use and
   the relevance of the data requirements

 • Seminars and workshops on the use on FINREP and COREP data will
   provide detailed information
•Data models structured in two layers: core and non-core
 • Core: data required by all supervisory authorities

 • Non-core: adapted to national needs, either for domestic-operating or
   entities included in cross-border groups (for the latter, the banks will build
   the data model by aggregations of national data models or by decision
   within a college of supervisors)

                                                                                    11
4. Timeline


                     2008               2009              2010            2011            2012




Reporting dates   COREP

                          FINREP*

   COREP

   FINREP*

                                *FINREP dates are tentative and are influenced by other factors, as JEGR
     Design phase
     Consultation phase
     Decision phase
     Transposition phase
     Application phase


                                                                                                   12
4. Graphically…

Reporting before…                           and after…

    Group A              Supervisor 1                          Supervisor 1


                                                        XBRL
                                        Group A, B, C
    Group B              Supervisor 2     Common               Supervisor 2
                                         framework
                                                        XBRL

    Group C
                         Supervisor 3                          Supervisor 3



Different templates and definitions        Common templates and definitions
Several formats                            Single format
Different technologies                     XBRL recommended

                                                                              13
5. Analysis of simplified reporting procedures

• Decentralised model vs. one entry point approach
• Analysis of costs and benefits for cross-border groups and
national authorities
• Analysis of pre-requisites for one entry point approach


                    FSA A                               FSA A




   Bank X                     Bank X
                    FSA B                  Database     FSA B




                    FSA C                               FSA C




                                                                14
Questions?


Thank you!

             15
Contacts:

CEBS
        www.c-ebs.org

        www.corep.info

        www.finrep.info


Wolfgang Strohbach:
wolfgang.strohbach@c-ebs.org

				
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posted:9/19/2011
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