V European Banking Supervisors XBRL Workshop COREP FINREP

V European Banking Supervisors XBRL Workshop COREP & FINREP XBRL projects update Ignacio Boixo COREP XBRL Project Coordinator XBRL Spain. Manager Bank of Spain. Int’l IT Projects Mngr. Madrid, 2006 -05 -18

Agenda 1. CEBS public statement about XBRL 2. XBRL implementation model 3. Project timeframes 4. COREP & FINREP today 5. Next Steps 2

CEBS public statement about XBRL 8. XBRL National supervisory authorities are free to decide on the technical aspects involved in implementing the framework. CEBS considers, however, that XBRL can be a helpful tool in constructing a standardised European reporting system. CEBS will develop an XBRL taxonomy, which will be made available without cost to national authorities and supervised credit institutions. CEBS December 2005. FRAMEWORK FOR CONSOLIDATED FINANCIAL REPORTING 3

Flexibility Principle Global best practices Basel II, IAS/IFRS … European Law 9 X, XX% best practices + EU requirements EC 1606/2002, 12/2000, 6/93… Country 1 Country 2 Country 3 Transposition into national Legislation Country 25 National Regulation FSA 1 FSA 2 FSA 3 FSA 25 National Implementation Report 1 ----------------- Report 2 Report 3 Report 25 ------------------------------------------------------------------------------------------------------------------------------------------------------------- 4 XBRL challenge!

COREP concept: extension COREP Future templates? COREP Templates Today Pillar II Supervision Pillar I Capital Pillar III Market 5 vs. Pillars

COREP concept: extension COREP superset of reports Custom report Sreport mall Medium Large report Depending on the national requirements each country will determine a framework and a level of detail. 6

COREP concept: template Template: Dimension 2 Dimension 1 Measure Dimension 3 Dimension 4 7 Measure

COREP concept: Data Matrix All the dimensions are optional! EXPOSURE TYPES EXPOSURE CLASSES STANDARD APPROACH CAPITAL REQUIREMENTS 8

Customisation of Labels: I German labels English labels § meaningful names of the items to be reported § are used in reports to hide the technical name 9

CEBS XBRL: IT implementation model Didactic model for explanatory purposes only Bank Supervisor Taxonomy XBRL Errors Internet Bank Management INDUSTRY to XBRL Operations Counterparties Collateral … Supervision from XBRL Report XBRL --------------- 10 Reports Other data …

CEBS XBRL EU: implementation model Didactic model for explanatory purposes only Basel II IAS/IFRS XBRL National implementation XBRL (National) Basel II IAS/IFRS XBRL (Europe) Bank Supervisor Internet Bank operations, controls…. Presentation, Analysis… Errors Bank Management IS Supervisory Basel II IAS/IFRS App. Operations Counterparties Collateral … to XBRL from XBRL Report -------------- Report XBRL core -------------- File Transfer (National) 11 Basel II IAS/IFRS App. Reports Other data … …

COREP implementation: Banks XBRL Reports Bank 1 Multiple implementation approaches: • Small banks may use Application Service Provider -ASP- model, outsourcing technical complexity • Banks may report all to all the Supervisors: Basel II & IFRS, Banking & Stock Exchange… • International Banks may reduce supervisory burden when reporting to different countries Bank 2 Bank 3 ASP provider Basel II Bank n Banking Supervisor IAS/IFRS International Bank Stock Ex. Supervisor Country Z Supervisor 12

Opportunity window 2002 2003 2004 2005 2006 2007 2008 Too late Today! Too early Establishing: CEBS XBRL EU • • • 13 Operational: Basel II IFRS/IAS • • •

COREP & FINREP prerequisites completed √ 16 Dec. 2005 CEBS GUIDELINES ON FINANCIAL REPORTING CEBS has published guidelines establishing a standardised financial reporting framework (FINREP) for credit institutions operating in the EU. 31 Dec. 2005 Dimensions 1. 0 (Candidate Recommendation) The Dimensions 1. 0 Specification is a modular, optional extension to the XBRL 2. 1 Specification which allows XBRL taxonomy authors to define and restrict dimensional information. 13 Jan. 2006 CEBS GUIDELINES ON COMMON REPORTING CEBS has published guidelines on a common reporting framework (COREP) to be used by credit institutions and investment firms when they report their solvency ratio to supervisory authorities under the Capital Requirements Directive. 14

COREP steps Preliminary Workshop 04 -09 -23 Kick off 1 st Workshop 05 -02 -17 2 nd Boston 3 rd Workshop Conference Workshop 05 -04 -18 05 -04 -25 Tokyo 4 th 5 th Conference Workshop 05 -09 -15 05 -11 -07 06 -01 -30 06 -05 -18 Organization Proof of concept Preliminary version 0. 6. 1 Tools Production version 1. 0 Tuning 05 -02 -17 06 -03 -10 15

FINREP steps Kick off 4 th Workshop 06 -01 -30 5 th Workshop 6 th Workshop 06 -05 -18 06 -09 -XX Internal version 0. 24 Public version 0. 24 Production version 1. 0 Tuning 16

COREP & FINREP TODAY COREP: Taxonomy & Documentation published Public & Quality review => Next Improvements? Starting International acknowledgment FINREP: Project team working actively. Results in this Workshop. XBRL Tools: Updated to Dimensional Specification. Please ask for demos at the exhibition area. 17

Who is who Chairmanship Danièle Nouy, CEBS Chair, Secretary General French Banking Commission José María Roldán, CEBS past Chair, Director General Bank of Spain Pierre-Yves Thoraval, COREP past Chair, Marc Pickeur, EGFI reporting Chair, Kurt Ramin, XBRL Int’l Chair, French Banking Commission Belgium Banking Commission International Accounting Standards Committee Federico Florez, XBRL Spain CEO, Bank of Spain CIO FINREP Giancarlo Pellizzari – Belgium CBFA Patrick Amis – French Banking Commission Jacobo Varela – Bank of Spain Mark Creemers - National Bank of Belgium 18

COREP project team Full time developers Katrin Schmehl – Bundesbank Daniel Hamm – Bundesbank Panagiotis Voulgaris – Bank of Greece Magdalena Llano – XBRL Spain Support Ignacio Boixo – Bank of Spain Michele Romanelli – Bank of Italy Fernando Wagener - Bank of Spain Walter Hamscher – Pw. C & XBRL Fernando Navarrete - Bank of Spain Olivier Servais – XBRL in Europe Ignacio Hernández-Ros – XBRL Int’l Project Coordination Data Modeling Data Input & Mapping Strategic Consultant Business Relationship Workshops & dissemination Dimensions & Implementation And many more…. 19

Collaborative Tools www. corep. info www. finrep. info http: //finance. groups. yahoo. com/group/XBRL-COREP/ Conference Call every Thursday. Time: 16: 00 CET, 15: 00 London, 10: 00 Boston, 07: 00 Seattle Phone number: +34 91 398 3857 Conference ID: 563 483 20

CEBS XBRL flows National Supervisor Project Office Support Solutions Business Requirements Guidance CEBS XBRL Development & Maintenance 21

COREP Intellectual Property Supporting the royalty free use of XBRL on COREP & FINREP, an Intellectual Property Strategy has been implemented: Pre-emptive measure in the IT world. Trademark: CEBS Secretariat Ltd. has applied for the names “COREP” & “FINREP” Copyright: The COREP & FINREP XBRL Project version 1. 0 deliverables will be protected by copyright, owned by the CEBS Secretariat Ltd. 22

Challenge The real challenge is not the development of the taxonomy; a group of enthusiastic people is ready to carry out this job, as it has been demonstrated. The real challenge is the real XBRL implementation The XBRL coordination among Supervisors is the critical success factor. 23

Thanks - Obrigado - Merci - Gracias Danke - Grazie - Ευχαριστίες - Спасибо Pieter Bruegel The Tower of Babel. 1563 24