Secrtariat gnral de la Commission bancaire Direction de

Secrétariat général de la Commission bancaire Direction de la Surveillance Générale du Système Bancaire SURFI Unified FInancial Reporting System Banque de France’s financial data collecting system in XBRL 19 th XBRL International Conference June 23 th, 2009 Jean-Luc Menda Deputy Director Sylviane Delarue Head of IT department Commission bancaire Banque de France

Presentation overview 1. A new Information System 2. Building the SURFI taxonomy 3. SURFI IT Project Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System Main IT strategy elements : – Implement the new COREP and FINREP reports in compliance with European harmonized framework – Follow the CEBS recommendation to adopt XBRL in order to foster harmonization – Change our reporting framework, promote harmonization and streamlining, launch the SURFI project Banque de France – direction de la Communication – Modernize our banks rating system and IT studies system Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System In this framework, progressive, but complete change of our reporting system… …in 3 stages: • COFINREP project implementing COREP et FINREP specifications: beginning of 2006 – mid 2008; • MODEC project modernizing the civil status data gathering: June 2007 – 1 st semester 2010; • SURFI project modernizing and streamlining regulatory data gathering: April 2008 – June 2010 Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System MODEC project SURFI project COFINREP project MODEC project Go live SURFI project v. 1 SURFI project v. 2 SURFI Business study Banking industry consultation Taxonomies building Financial Agents Information System Upgrade Beginning of 2006 Mid-2007 April 2008 End of 2008 SURFI Taxonomy finalization June 2010 Dec. 2010 Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System COFINREP Project • Allowed the implementation of the Basel II and IFRS impacts on the regulatory reports… • … following the CEBS recommandations about the use of the XBRL standard for harmonized European COREP et FINREP reports. • Launched in 1993, the present BAFI system, using a proprietary data format, couldn’t be upgraded to reach the new specifications. • A finished project : – New functionalities since September, dedicated to the supervision staff (e. g. specific reports); – Next improvment : the implementation of the « tolerance margin » . Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System MODEC project • Offering to the banking industry a state-of-the-art interactive software dedicated to civil status processes ; • Being able to get live data transmission from banks and give them feedback ; • Taking into account the new European regulatory requirements : – integrate new categories of banks, in compliance with european directives, – and reinforce the disclosures (the directive on « Systems of payment » requires the creation of an on-line registered bank database » • Allowing the 80 IT systems of Bo. F to have an easy real-time acces to this system of reference (WEB site, WEB services, WEBSPHERE, ORACLE) • End of the project : 1 st semester 2010 (this system of reference is necessary for SURFI) Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System Present data collection system : BAFI – Reporting entities : 910 MFIs – according to the French banking law, id. broad definition -, and 156 investment firms – 840 end-users within the Commission bancaire and the Banque de France – Coverage : data for statistical as well as prudential purposes, but Bo. P data partially out of the scope – Same database, but limited harmonization of concepts and reporting formats, generating double collection of data – On the technical side, database system based on a proprietary system developed in 1993, therefore somewhat mature Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System Modernizing the reporting system – Result of a discussion process with the banking industry following the introduction of COREP and FINREP – The industry requested : • a significant reduction of the reporting burden • the elimination of double collection of data for supervisory and statistical purposes • a better coordination in the definition of new reporting requirements between Banque de France departments Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System Launched in June 2007, the main objectives of the project – Harmonize data collection for supervisory and statistical purposes, in eliminating double collection of data – Alleviate the reporting burden through the streamlining of the entire present reporting system – Take fully into account the ECB statistical revision package and articulate our own schedule – Switch from a template centered approach to a data centrix approach, capitalizing on our XBRL experience for COREP and FINREP. Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System Simplified scope of the project (Tier 1) French Gaaps ( Tier 2) French Gaaps (Tier 3) IFRS or French Gaaps Monetary statistics =France (1) Prudential data =France + branches abroad =social accounts (2) Consolidated Prudential data (3) Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System Main results in terms of harmonization – Broad harmonization between tier 1 and tier 2 data, relying on the same accounting standards (French Gaaps) ; – Limited between tiers 1 and 2 on the one side, and consolidated data established either on IFRS or French Gaaps, depending on the institution Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System Potential links between counterpart breakdowns – Find bridges between the different reporting schemes (ESA 95, FINREP and COREP) – Make it easier for MFIs to manage counterparty breakdowns – Build a table allowing to bridge ESA 95 counterpart sectors with SURFI counterparts, as well as COREP and FINREP Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

1. A new Information System Other achievements of the project – Elimination of double collection of data : every data will be sent once either for statistical or prudential purpose – A significant reduction in the volume of data – A more risk-based oriented system consisting of core information sent by every institution, complemented by information sent depending on the level of activity in different areas (thresholds for interbank operations, financial instruments, credit…) – Release the global taxonomy… Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

Presentation overview 1. A new Information System 2. Building the SURFI taxonomy 3. SURFI IT Project Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy – The Commission Bancaire has followed a specific method to build its SURFI taxonomy. • to facilitate the collaboration between business-oriented staff and IT specialists, • and accelerate the global development process. – This method is based on four main stages : Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy 1 st stage – Design of the SURFI future templates revised by three working groups : • the presentation rules have been determined • regarding the format and the header, use of a specific colour code to identify dimension names and their values, facts, forbidden data, presentation labels • the elements and dimensions codification will be implemented at the same time. – Templates validation by Monetary departments, banking commission, ultramarine departments : just finalized. Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy 2 nd stage – implementation of the working principles of the SURFI taxonomy : building of «primary taxonomies and dimensions» . – « primary taxonomies» elements come from : – elements from the « accounting class data tree » – other elements resulting directly from the templates – each element has its own concept name, label, hierarchical links with other elements, regulatory references. Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the Surfi Taxonomy Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy • the XBRL element name was determined from the element labels belonging to the data tree or the templates. • the normalisation of the template presentation and the data tree elements made easier the automatic initialization of most of the future taxonomies via a purpose-built tool. • SURFI templates naming rules were validated by the users. • templates were grouped by activity blocks (associated to a threshold or a theme). Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy 3 rd stage • the « dimension taxonomies » , their values and their hierarchical order were elaborated. • for each template : design of the hypercubes. • choice of a modularized model of taxonomy architecture (FINREP 1. 3), in accordance with the best practices. Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy • Global architecture (templates et « primaries » ) : T-CARTO 2008 -1231. xsd T-SURFI-2008 -1231. xsd t-sia-2008 -31 -12. xsd t-ste-2008 -31 -12. xsd t-sor-2008 -31 -12. xsd T-BLANCHI 2008 -12 -31. xsd Independant taxonomies … 72 templates p-sia-200812 -31. xsd p-ste-200812 -31. xsd p-s 02 -200812 -31. xsd p-s 08 -200812 -31. xsd p-s 04 -200812 -31. xsd p-sxx-200812 -31. xsd Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy 4 th stage § Implemention of all the business controls : § Determine the expected controls typology (in March), § Select those that can be implemented in the taxonomy with the «formulae» recommendation § Evaluate those which will be dealt with by specific developments § Draw up the exhaustive list of business controls (by the end of May) § Set up the formulae tables and integrate them into the taxonomy. Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy 4 th stage § Focus on the controls typology : data controls § § § § Basic operation (+ - / *), AVERAGES, MIN, MAX, ABS EQUAL, GREATER, >=, LOWER, >=… Alternative controls : IF … THEN … ELSE … Inter-instances / inter-taxonomy controls (between COREP, FINREP and/or SURFI) Inter-templates controls (into a single taxonomy) vs Intratemplates controls Existence of mandatory facts Controls using fixed parameters. Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy 4 th stage § Focus on the controls typology : trigger controls § § § Tolerance margin (potentially depending on the control type) From a templates list reported by the bank « business card » data (including civil status data) Remittance date, Missing facts, After reception of all the data to be compared. Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy 4 th stage § Focus on the taxonomy building § Because of the deadline of the IT project and the lack of tools, we have to generate as automatically as possible the formulae tables § Quite easy for : primary item aggregation, dimension aggregation, (of which) checking § Quite difficult for the others § Some will need specific processing Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy • Some figures about SURFI Taxonomy : – – 72 templates (some of them with sub templates) 950 elements from the data logical tree 1550 elements outside the data logical tree 23 dimensions Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

2. Building the SURFI taxonomy Timetable: • End of September 2008 : 1 st version of the templates. • December 2008 : release of SURFI Taxonomy version 0. 1. • Beginning of April 2009 : release of version 0. 2 (first optimization). . • End of June 2009: release of SURFI Taxonomy version 1. 0 • June 2009 : 1 st part of formulae links table building • BUT : Supply of a technical paper, enclosing EXCEL sheets describing all the required controls • September 2009 : complete formulae links table building Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

Presentation overview 1. A new Information System 2. Building the SURFI taxonomy 3. SURFI IT Project Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

Current situation of IT system BAFI Civil statuts data Financial Institution Information System Prudential and accounting Reporting Input Output Configuration Accreditation Bâle II Inside applications CB/BDF SIGNECB COREP Instances IFRS FINREP Instances Data Control and management Data mining XBRL Taxonomy management Accreditation COFINREP Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

Focus on SURFI - IT part of the project IT project milestones : • • • Launch of the project : beginning of June 2008 Requirements document created during the summer 2008 Open tender publication on the 31 st of October 2008 Kick off with the chosen supplier at the end of February 2009 Global design validation en May 2009 Detailed studies are in progress Opening of the tests platform for the external actors in January 2010 Opening of the 1 st version of the SURFI portal in July 2010 Opening of the 2 nd version of the SURFI portal in December 2010 Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

General process of the SURFI project Online Form Fill in ate tific cer Oracle DB Bd. F Portal Instance document One. Gate XBRL files Instance document DB storage XBRL Processor Taxonomy Ubmatrix XPE Rendering Processor Output Processor INVOKE SURFI Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

Scope of the IT Project • « infrastructure » module • • Easy navigation Access rights management Business Rules engine Static data management • « storage » module • • • ONEGATE (BDF Portal) exchange XBRL & business controls (via formula or specific processing) Storage in ORACLE DB (XBRL files & facts by facts) Instances aggregation Exceptions management Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

Scope of the IT Project • « monitoring » module • • Reporting duties defining (varying by threshold or activities) Remittance monitoring Mistakes or late data sending Exceptions management • «data use » module • Operating monitoring • Exporting to other IT systems Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

Scope of the IT Project • « reporting » module • Design of : • Regulation templates • Synthesis (mono or multi-agents, mono or multi periods) • Complex reporting (with different sources of information) • « taxonomies management » module • No solution today : It remains to be done Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

Main orientations • Use of formula as well for FINREP & COREP • Acceptance of partial data delivery (according to the SURFI rules of data remittance) • Instances delivery based on the SURFI master taxonomy, with notification of the related templates • Data aggregation and intra-instance controls will be immediately processed • Other control reports will be processed by night batch • Use of external taxonomies will be possible ( e; g; COREP HOST) • Small credit firms will be able to type their data into specific internet pages (instead of sending an XBRL file) • The retrieval of COFINRP data must be done Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC

Thank you for your attention ! Surfi: Unified Financial Reporting System Banque de France – Secrétariat général de la Commission bancaire SENSITIVITY LEVEL : PUBLIC