Presentation on theme: "Building an XBRL Basel II solution in Europe"— Presentation transcript:
1 Building an XBRL Basel II solution in Europe The COREP XBRL project
2 AGENDA Business case European Basel II framework COREP concept Superset of reportsData MatrixCOREP projectArchitectureTest casesProject team
3 Business case: XBRL use on COREP BankSupervisorBank operations, controls….Presentation, Analysis…Risk ManagementOperationsCounterpartiesCollateral…IS SupervisoryReportsOther data…ReportAggregatorReceptionXBRLinstance
4 Business case: XBRL use on COREP XBRL implementationCOREP XBRL Taxonomy (National Extension)COREP XBRL Taxonomy (Europe)BankSupervisorInternetBank operations, controls….Presentation, Analysis…ErrorsErrorsRisk ManagementOperationsCounterpartiesCollateral…IS SupervisoryReportsOther data…Basel IIApp.Basel IIApp.to XBRLfrom XBRLReportReportXBRL commonFile Transfer (National)
5 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
6 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;Standardisation: the number of different templates has been minimised.
7 Business case – European framework Basel IIEuropean Law9X,XX% Basel II compatibleDirectives 2000/12 & 93/6Transposition intonational LegislationCountry 1Country 2Country 3Country 25National RegulationFSA 1FSA 2FSA 3FSA 25National ImplementationReport 1Report 2Report 3Report 25XBRL challenge!
8 COREP concept: extension COREP superset of reportsLargereportCustomreportMediumreportSmallreport
13 COREP project: Architecture Initial XML/XBRL taxonomy based in COREPTechnological challenge17 DimensionsExposure type, Exposure classes, Risk weights…24 Measure setsExposure value, Capital requirements, …26 Templates (Dimensions x Measures)SA Capital requirements, IRB Capital requirements…Taxonomy description atSimplest solution for the easiest implementationKey XBRL “gurus” are participating in COREP
14 COREP project: Test cases Set of non-confidential test cases:Anonymous: No reputation riskPublic: to be used everywhereEarly involvement of banks & usersHands-on experience in COREPQuality control of XBRL taxonomiesAs simple as fulfilling a spreadsheet but…With the intrinsic complexity of Basel II
17 COREP project: Request for testing Common framework for the reporting of the solvency ratio (COREP) by credit institutionsTo test the COREP XBRL project, institutions are invited to participate by providing test data on a best effort basis. Please visit 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? to
18 Basic collaborative environment COREP project teamBasic collaborative environmentMultinational project team50 participants from 12 countries on kick-off workshopDifferent skillsSupervisor – businessSupervisor – IT expertsXBRL practitionersBanks, consultants & providersUniversityExtensive use of Internet toolsWebsitelist & repository on Yahoo GroupConference call
19 Acknowledgments Name Country Affiliation Adrian Abbott UK FSA Ignacio BoixoESNCBAlejandro SanzInfodesaIgnacio Hernández-RosSoft.AGAliki KazakopouloGRJ. Emilio LabraProf.Dr.Annica LundbladSEPwCJavier CoboFujitsuAntonio MencheroJavier de AndresAntonio Sánchez-SerranoJean-Marie CoudièreFRArturo LabandaJesus F. LigerAzertiaBryce PippertUSAUBmatrixJohan GiertzBankCésar Pérez-ChirinosJosé Luis F. CuñadoCharles HoffmanJosef MacdonaldIASBCormac McKennaIEKatrin SchmehlDECristina MenainormeKlaus BaumannDaniel D'AmicoXBRLKrisztina TamásiHUDaniel HammMagdalena LlanoScholarDavid CastroMichele RomanelliITDelphine MoreauOlivier ServaisBEDennis PelsNLPablo NavarroDon InscoePamela MaggioriEmilio QuerolPanagiotis VoulgarisFernando NavarretePaolo MilaniFernando WagenerPedro LorcaFrancesco CanforaPhil WalengaFrancisco FloresRon BaremansFrédéric MariéVictoria SantillanaAFIGustavo GarciaIBMWalter Hamscher
20 Test cases are more than welcome. Fell free to join the COREP Club!Thanks for your attention.