EBA COREP and FINREP Harmonization for Europe Andreas

EBA COREP and FINREP Harmonization for Europe Andreas Weller, Head of IT EBA

Lux, EC and electronic exchange format The Office for Official Publications started the production of SGML instances for the documents published in the different OJ series in 1985. The specifications are known as Formex (Formalised exchange of electronic documents). The version 3 entered into force on the 1 st of April 1999. The version 4 entered into force 2004. 2

Lux, EC and electronic exchange format SGML and SGML based grammars have not had the success as expected. - the development of suitable and comfortable tools is very hard. As a result: XML was invented which is much stricter and therefore made it easier for the development of tools. Formex 4 = XML + XML Schema + Unicode 3

Formex and COREP, FINREP - All our publications gets published in Formex - Similar lifecycle in our history 4

COREP and FINREP § Visionary people for Europe and XBRL early 2000 § First versions in 2004 § First versions used by NSA in 2005/2006 § 02 December 2013 FINREP/COREP V 2. 0 § V 2. 0 come into force 1. Jan 2014 on 1 st to 2 nd level § V 2. 0 come into force for 1 st level for several nations (NSA) § Formex = COREP/FINREP § 10 years experience with the format. PRESENTATION TITLE 5

COREP and FINREP not a publication format PRESENTATION TITLE 6

COREP/FINREP versus Formex XBRL versus XML § After 10 years Formex has reduced from 1200 tags to 260 tags § After 10 years FINREP/COREP has been enhanced from 500 data points to 30000 data points § The technology has make progress in 20 years § For a secure data exchange with a usable and reusable electronic data format we need more. § And we need quality data PRESENTATION TITLE 7

10 years Formex and FINREP/COREP FORMEX • 10 last years in FORMEX where characterised by adjustments and fine tuning of the format • After 8 years you have had a stability and a finality • Adoption of minimal technical and business adjustments FINREP/COREP • EBA expect a similar process in terms of technical adjustments • The financial market and the reporting needs are volatile • The reporting needs have to be adopted minimum on a yearly base for the next years • A stability on business needs fro CRDIV and ITS should be in 2 -3 years • The creation of a flexible reporting platform from the filler is highly recommended PRESENTATION TITLE 8

Taxonomy COREP and FINREP Although primarily developed for use in data transmission between competent authorities and the EBA, many authorities are known to intend to use the proposed XBRL taxonomy for the collection of supervisory reporting from the credit institutions and investment firms they supervise. PRESENTATION TITLE 9

The conception phase is over The phase of the load will start. We expect to receive now: - Harmonized EEA Data - Quality EEA Data - Consistent EEA Data EBA is committed to XBRL, future releases will respect the aaproach which is set in release V 2. 0 PRESENTATION TITLE 10

The LOAD phase is starting 11

Some quotes from the market Regulations cost us so much we have no budget to implement our core business functions. Our systems are distributed over several platforms and we are not able to deliver the requested data without significant manual effort. PRESENTATION TITLE 12

Some quotes from the market There is no standard format available which allow the validation of data in an electronic exchange format. Without regulations we would make never progress on the standardisation, even when everybody has the best intention. PRESENTATION TITLE 13

To move forward and be on the save side for the load a) Have a clear and accurate interpretation of European Banking Authority (EBA) data definitions in the ITS. b) Understand technical points and complexities of Data Point Model versus individual reporting. c) Addressing data management issues by designing business processes to handle increases in data volume and complexity. d) Creating robust validation rules to deliver the requested data quality. e) Enable vendor management to produce final outputs from source IT systems in XBRL. f) Understand IT infrastructure limitations to handle future changes to EBA. PRESENTATION TITLE 14

Summary • The ITS which come into force on the 1 Jan 2014 • A DPM is part of the ITS and give clear explications of the requested data • COREP and FINREP is published which describe the ITS on a level of the technical exchange format for NSA’s to EBA • The taxonomies COREP and FINREP V 2. 0 are deployed with some standard of the art features • Validations • Table Linkbase • Rendering Linkbase • Multidimensional taxonomies • Performance optimisation PRESENTATION TITLE 15

Schei Chreschtdeeg! Joyeux Noël! Frohe Weihnachten! Merry Christmas! PRESENTATION TITLE 16

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