www.corep.info the corep xbrl project steering committee, 2005-06-03
TRANSCRIPT
www.corep.info
The COREP XBRL Project
Steering Committee, 2005-06-03
www.corep.info 2
AGENDA
1. Business case
2. COREP concept
3. COREP project
4. COREP implementation
5. COREP next steps
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Business case: XBRL use on COREP
Bank
Risk Management
OperationsCounterparties
Collateral…
Aggregator
Report
------------------------------
Supervisor
IS Supervisory
ReportsOther data
……
Reception
Presentation, Analysis…Bank operations, controls….
XBRL
instance
www.corep.info 4
Business case - Definition
COREP:defining a COmmon REPorting framework around the solvency ratio for credit institutions and investment firms under the European Union Capital Requirements.
(Based on Basel II, Pillar I)Committee of European Banking Supervisors www.c-ebs.org www.c-ebs.org
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Business case - requirements
Flexibility: each supervisor is allowed to choose the scope as well as the level of aggregation of information required; the framework will allow for flexibility also to accommodate for differences in the exercise of the national options foreseen in the Capital Requirements, for instance with reference to the treatment of small institutions;
Consistency: the same concepts and terminology have been used as far as possible;
Standardization: the number of different templates has been minimized (business) and their representation has been formalized into XML/XBRL (computing).
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Business case – European framework
Basel II
Directives 2000/12 & 93/6
Country 1
FSA 1
Report 2Report 1
------------------------------------
Country 3Country 2 Country 25
FSA 2 FSA 3 FSA 25
Report 25
----------------------------------------------------------------------------------------------------------------------------------------------------------------
Report 3
----------------------------------------------------------------------------------------------------------------------------------------------------------------
National Regulation
Transposition into national Legislation
European Law9X,XX% Basel II compatible
National Implementation
XBRL challenge!
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COREP concept: extension
Largereport
Mediumreport
Smallreport
Customreport
COREP superset of reports
COREP superset of reports
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Pillar ICapital
COREP TemplatesToday
Pillar ICapital
COREP concept: extension
Pillar II Supervision
Pillar IIIMarket
COREPvs. Pillars
COREPvs. Pillars
Future templates?Future templates?
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COREP concept: template
Dimension 2
Dimension 1
Dimension 3
Dimension 4
Measure MeasureMeasure Measure
Template:
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COREP concept: Data Matrix
EXPOSURE TYPES
STANDARD APPROACH CAPITAL REQUIREMENTS
EXPOSURE CLASSES
All the dimensions are optional!
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COREP Project: forecast by January 21st
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COREP project: goals
Deliverables
Initial COREP XBRL taxonomy √ 2005-05-13
To be updated following business changes
Set of non-confidential test cases √Project X Banks
To be populated when Banks decide to participate
Basic collaborative environment √ corep.info
To be improved if helping COREP implementation
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COREP project: Architecture
Initial XML/XBRL taxonomy based in COREP Technological challenge
20 Dimensions Exposure type, Exposure classes, Risk weights…
32 Measure sets Exposure value, Capital requirements, …
31 Templates (Dimensions x Measures) SA Capital requirements, IRB Capital requirements…
Taxonomy description at www.corep.info
Simplest solution for the easiest implementation
Key XBRL “gurus” are participating in COREP
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COREP project: Instance
<!-- Context1 --> <m-re:LastSemester decimals="0" contextRef="Context1" unitRef="Unit1">0</m-re:LastSemester> <m-re:RelevantIndicator decimals="0" contextRef="Context1" unitRef="Unit1">0</m-re:RelevantIndicator>
<m-re:OwnFundsRequirements decimals="0" contextRef="Context1" unitRef="Unit1">0</m-re:OwnFundsRequirements> <!-- Context2 --> <m-re:LastSemester decimals="0" contextRef="Context2" unitRef="Unit1">0</m-re:LastSemester> <m-re:RelevantIndicator decimals="0" contextRef="Context2" unitRef="Unit1">0</m-re:RelevantIndicator> <m-re:OwnFundsRequirements decimals="0" contextRef="Context2" unitRef="Unit1">0</m-re:OwnFundsRequirements>
- <context id="Context1">- <entity> <identifier scheme="www.DemoBank.com">DemoBank</identifier> </entity>- <period> <instant>2005-12-31</instant> </period>
<scenario> <dims:dimMemRef xlink:type="simple"
xlink:href="t-op-2005-06-30.xsd#t-op_DimensionNameBankingActivities">d-re:TotalBankingActivitiesSubjectToBia</dims:dimMemRef> </scenario>
</context>- <context id="Context2">- <entity> <identifier scheme="www.DemoBank.com">DemoBank</identifier> </entity>- <period> <instant>2005-12-31</instant> </period>- <scenario> <dims:dimMemRef xlink:type="simple" xlink:href="t-op-2005-06-30.xsd#t-op_DimensionNameBankingActivities">
d-re:TotalBankingActivitiesSubjectToSa</dims:dimMemRef> </scenario> </context>
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COREP project: Test cases
Set of non-confidential test cases:
Anonymous: No reputation risk Public: to be used everywhere Early involvement of banks & users Hands-on experience in COREP Quality control of XBRL taxonomies As simple as fulfilling a spreadsheet but… With the intrinsic complexity of Basel II
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COREP project: Test cases flow
Anonymous Information
www.corep.info
Anonymous Comments
Public Repository
COREP-XBRL Group
COLLABORATING INSTITUTIONCOLLABORATING
INSTITUTIONCOLLABORATING INSTITUTION
Excel File
XBRL printout
Doc, Pdf,… Files
2
3
4
5
1
COLLABORATING INSTITUTIONS
SUPERVISORS
XBRL COMMUNITY
OTHERS
XBRL Instance
Anonymous upload
Non compliant test cases
Excel File
Doc File
Mapper
PROJECTMANAGEMENT
Anonymous Information
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COREP project: Request for testing
Common framework for the reporting of the solvency ratio (COREP) by credit institutions
To test the COREP XBRL project, institutions are invited to participate by providing test data on a best effort basis. Please visit www.corep.info for details.
Who can participate? Any institution that has access to data of banking activities, like for example, credit institutions, consultant firms or any other party interested in participating.
How to participate? Institutions should provide test cases using this spreadsheet (www.corep.info/documents/coreptest.zip) and attaching all the relevant documentation associated. No XBRL knowledge is necessary!
Collaborating institutions will acquire through their participation in this process: A deeper and better understanding on the COREP reporting framework for the solvency
ratio. A chance to provide comments on how the proposed framework works. This may help
institutions to provide comments on the CEBS consultation paper. An early knowledge about the availability in their systems of the information that will be
required in the future for solvency reporting.
The collaboration in this open process will also allow the Institutions to benefit from the experiences, comments, suggestions and questions posed by other members of the banking industry, market participants and XBRL experts.
Questions? e-mail to [email protected]
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COREP project: team
Basic collaborative environment Multinational project team
50 participants from 12 countries on kick-off workshop
Different skills Supervisor – business Supervisor – IT experts XBRL practitioners Banks, consultants & providers University
Extensive use of Internet tools Website www.corep.info E-mail list & repository on Yahoo Group Conference call
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COREP project: Acknowledgments (kick-off workshop)
Name Country Affiliation Name Country AffiliationAdrian Abbott UK FSA Ignacio Boixo ES NCBAlejandro Sanz ES Infodesa Ignacio Hernández-RosES Soft.AGAliki Kazakopoulo GR NCB J. Emilio Labra ES Prof.Dr.Annica Lundblad SE PwC Javier Cobo ES FujitsuAntonio Menchero ES Soft.AG Javier de Andres ES Prof.Dr.Antonio Sánchez-SerranoES NCB Jean-Marie Coudière FR NCBArturo Labanda ES PwC Jesus F. Liger ES AzertiaBryce Pippert USA UBmatrix Johan Giertz SE BankCésar Pérez-Chirinos ES NCB José Luis F. Cuñado ES InfodesaCharles Hoffman USA UBmatrix Josef Macdonald UK IASBCormac McKenna IE Fujitsu Katrin Schmehl DE NCBCristina Mena ES inorme Klaus Baumann DE NCBDaniel D'Amico UK XBRL Krisztina Tamási HU FSADaniel Hamm DE NCB Magdalena Llano ES ScholarDavid Castro ES Azertia Michele Romanelli IT NCBDelphine Moreau FR NCB Olivier Servais BE XBRLDennis Pels NL NCB Pablo Navarro ES Soft.AGDon Inscoe USA FSA Pamela Maggiori IT NCBEmilio Querol ES PwC Panagiotis Voulgaris GR NCBFernando Navarrete ES NCB Paolo Milani IT NCBFernando Wagener ES NCB Pedro Lorca ES Prof.Dr.Francesco Canfora IT Bank Phil Walenga USA UBmatrixFrancisco Flores ES Scholar Ron Baremans NL NCBFrédéric Marié FR NCB Victoria Santillana ES AFIGustavo Garcia ES IBM Walter Hamscher USA XBRL
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COREP project: Investment (Feb.-May 2005)
Concept Number Units Market* Cost Secretariat
IT developers full time 3 12 months 12.000 € 144.000 € -Intl. XBRL advisors 3 10 weeks 6.000 € 60.000 € -Business advisors 3 10 weeks 3.000 € 30.000 € -Scholars 3 12 months 1.000 € 12.000 € -IT support & coordination 10 50 weeks 3.000 € 150.000 € -Attendants on site 50 50 weeks 3.000 € 150.000 € -Attendants off site 150 260 msg. - - -Subtotal staff 54 months 546.000 € -
Website & e-mail corep.info 150 € 150 € -Conference call 10 calls 100 € 1.000 € 300 €Meeting rooms 2 20 days 1.000 € 20.000 € -Tools, training & develops. 50.000 € 50.000 €Travels & accommod. 75 trips 2.000 € 150.000 €Subtotal supplies 221.150 € 300 €
TOTAL 767.150 € 300 €
Around three quarter million € has been invested until June 2005 by Supervisors and XBRL community, of which 300 € by CEBS Secretariat
(*) Market cost per unit. Source: PwC
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COREP implementation: Model
Bank
Risk Management
OperationsCounterparties
Collateral…
Report
XBRL------------------------------
Supervisor
Supervision
ReportsOther data
…
to XBRL
Taxonomy XBRL
Errors
Internet
fromXBRL
INDUSTRY
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COREP implementation: Model
Bank
Risk Management
OperationsCounterparties
Collateral…
Report
------------------------------
Supervisor
IS Supervisory
ReportsOther data
……
Presentation, Analysis…
Bank operations, controls….
Basel IIApp.
to XBRL
from XBRL
Basel IIApp.
Report
------------------------------
File Transfer (National)
COREP XBRL
(Europe)
COREP XBRL
(National)
ErrorsErrors
Internet
XBRL implementation
XBRL core
Basel II Basel II
Didactic model for explanatory purposes only
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COREP implementation: Banks
Bank “2”
Banking Supervisor country “A”
Banking Supervisor country “B”
Bank “1”
Reports XBRL
Basel II
IFRS
XBRL reports can be used for Basel II as well as for IFRS
XBRL reports are also useful interchanging information between supervisors
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COREP implementation: Banks
Bank 1
International Bank
ASP provider
Banking Supervisor
Stock Ex. Supervisor
Country Z Supervisor
Bank 2
Bank 3
Bank n
Reports XBRL
Basel II
IFRS
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
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COREP implementation: Simple
The Bank of Spain is offering as help to the Credit Institutions a converter to XBRL
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COREP implementation: Complex
Access Channels
Orchestration / Integrator
Infrastructure Services
Logs Services Reports Generation Directory Services
…
Integrated Services
Reports, Transformation, Analysis, Validation, Storage …
Messages Treatment
Connectors, Mappers, Validation, Routers, etc.
Services
of
Security
Contents Management
Application Services
Commercial Packages
…
Complex Information System example (Bank of Spain)
Clients
HOST Data warehouse
Persistence
of data
INFORMATION BUS
PREPARE TECHNICAL SOLUTION
Def
ine
& i
mp
lem
ent
the
log
ical
arc
hit
ectu
re
XBRL added here!
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COREP Next Steps
Where we are now
Taxonomies Stable release on time: May 2005 Reviewed release stable for the summer
Instances: Examples published for the industry
Infrastructure: Operative
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COREP Next Steps
Maintenance: Business (Bank comments) & Technical (dimensions)
Ownership: CEBS Secretariat
Intellectual Property License model: XRBL Intl. Options: Creative Commons, GNU, others…
Timetable? Business area developments (MKR templates already done)
XBRL Standards developments Updates to taxonomy contents
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COREP Next steps: Releases
05-06-03 05-06-28 05-11-07 1Q 200505-07-31 05-09-15
Release 0.5
Release 1.0
Release 0.7
Release 0.6
Steering Committee
European Workshop
Dimensions: Approved
COREP: Published
Vendors involvement
Dimensions: Public draft
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COREP Next steps: Schedule
June Dimension Specification: Public draft (June 28) New definitions impacting more than 20% of current templates Preparing documentation for vendors Interface specifications & implementation working group to continue.
July Release 0.6 published at www.corep.info Vendors upgrading tools with stable technology Evaluate impact of new business definitions
August - Preparing Workshop materialsSeptember - Workshop with XBRL in EuropeOctober – Release draft customisations for 3 countries (NL…?) November
Final Dimension Specification (Tokyo, Nov. 7) Release 0.7 Target for a ‘working pilot’
December – not much1Q 2006 - CEBS publish final templates. RELEASE 1.0
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COREP Next steps
External Influences, cont.
NL - Wants templates operational by 1 July 2006. Means some customisation for Dutch banking Assume existing IT infrastructure can be leveraged Wants final Dutch plan ready 1 October
FR – Q1 2007 – able to receive Distinctions between Standardised, IRB, Advanced
approaches can impact timing
Impact of additional QIS 4, QIS 5 surveys?
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COREP Next steps
Additional Considerations
Assume it takes 1 year to implement technically in any supervisor
Oct 2005 – target for finalising COREP1Half 2006 – nothing much happening2Half 2006 – earliest data collection1Half 2007 – able to receive for SA, IRB1Half 2008 – advanced approach
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COREP Next steps
Steps to Completion 1/3XBRL International operating plan does have the dimension requirements
at public working draft stage in June, with the specification following shortly thereafter. It is a top priority and has the total support of consortium leadership and the attention of all key vendors. Calculations, validations and Dimensions are necessary.
Business validation of concepts and their relationships to each other
Need for external commentary on CP04 templates and incorporate into templates.
Insufficient input from banks about test cases
Filling the templates is difficult (it seems)
Requirements finalisation with respect to modelling needs
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COREP Next steps
Steps to Completion 2/3
Adapting legacy systems to the new data requirements (“mapping”) Lack of awareness / prioritisation by banks of new data requirements We need to give advice on implementation requirements
End user in banks - increase involvement / awareness
Need local expertise by coming Autumn (urgency) Need for training to every country
Need more test cases and ownership of mapping tool *
Need for a live demonstration web site that shows end-to-end process Also documentation on how it works (e.g. links among templates and
taxonomies) Need for a project office to own / manage the site, taxonomies, etc.
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COREP Next steps
Steps to Completion 3/3
Templates are now out of synch with taxonomies; need a single source under control
Ability to synchronise differences in collection requirements by using COREP taxonomy
Planned deliverables need to include roadmaps (and maybe more) for implementation, per stakeholder, in order to support an adoption decision. Requires coordination of roadmaps in terms of timing and
milestones
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COREP Next steps
Draft roadmap
Host taxonomy
Implementation workshop for supervisors
Implementation specification
Maintain taxonomy
Basel II extensions: Other Pillars, other countries
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COREP Next steps
Draft roadmap
Roles: Business supervisors, IT supervisors, XBRL consortium (Int'l and National), Banks, Universities...
Tasks: Business maintenance, Technical maintenance, Relation with supervisors and European / global XBRL players
Other developments: Composition of the project team & relations with FINREP (sharing IT/IS efforts?); Economies of scale in a multinational adoption, Web site, Intellectual Property…
Medium term strategy of deliverables and allocation of resources.
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COREP Next steps
Task scheduling the coming months:
Involvement of software developers: Documentation, test cases, conformance suite, technical questions
Involvement of supervisors and banks: best practices, support, recommendations
Preparation of September Workshop, in collaboration with XBRL in Europe
Scheduling of the following phases
Documentation and possible recommendations
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COREP Next steps: Options
National approach
Only the taxonomy is to be maintained, as well as some documentation. Each country will have to deal with all the topics related with the local implementation. Limited coordination/collaboration framework will be in place. No XBRL Europe Jurisdiction in place.
Pros: Limited common resources. National organizations are now in place. No need for any change.
Cons: Lack of European coordination. If no assistance is provided to other countries; repeated work in each country, no "critical mass" to attract European vendors.
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COREP Next steps: Options
European approach A coordination group is created to ensure the maintenance of the
taxonomy and its documentation. Technical information and set of tests are provided to the vendors, when updates are to be implemented. This group provides a European level player to work with the XBRL International Consortium, vendors and third parties. Validation of tools and solutions. Best practices will be developed. Centres of excellence will provide common recommendations. Organization of training and help for countries asking for it.
Pros: Complete European solution to be locally implemented. "Export" the solution to other countries as "de facto" standard. Full support of the industry, providing cheap off-the-shelf software, due the large mass of participants.
Cons: A stable organization with some resources has to be built or one that is already stable would need some additional resources to take responsibility. How to allocate resources?
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COREP Next steps: Options
Adaptive approach
Depending on availability and personal involvement, the actual resources in each moment will deal with the challenges in each moment. Requires a mandate and an identifiable commitment of interested supervisors, may be via a Stakeholders Group
Pros: Efficient use of available resources. No CEBS budget. Easy adaptation to changing environment.
Cons: Difficult of maintaining scheduling. Limitations when reassigning priorities/tasks. Part of the goals would be under resourced.
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COREP Next steps: Options
DirectionDirection
Development & Implementation Team
Manager
Quality Ctrl. Expert
Common
Specific
Common
On Demand
AlternativesProactive
Project Office
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COREP Next steps: Options
The project COFINREP (Bank of France)
for COREP & FINREP templates, to receive XBRL instances from banks
progressively integrate XML/XBRL tools in our information system (for
banks, maybe also)
economy of scale for supervisors, banks and software industry one
technical solution applied for two new business domains with parallel
timetables
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COREP Next steps: Options
Challenge
The real challenge is not the initial design of the taxonomy; a group of enthusiastic people is ready to carry out this job, as it has been demonstrated.
The real challenge is to locally implement a nice design into a fruitful pan-European system.
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Thanks - Obrigado - Merci - Gracias Danke - Grazie - Ευχαριστίες - Спасибо
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