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Short Term Has No Future Amsterdam, 6-7 November 2007 Giancarlo Pellizzari Head of Prudential Policy Dexia Group XBRL CEBS Workshop.

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Presentation on theme: "Short Term Has No Future Amsterdam, 6-7 November 2007 Giancarlo Pellizzari Head of Prudential Policy Dexia Group XBRL CEBS Workshop."— Presentation transcript:

1 Short Term Has No Future Amsterdam, 6-7 November 2007 Giancarlo Pellizzari Head of Prudential Policy Dexia Group XBRL CEBS Workshop

2 22 1. Dexia and XBRL: a reminder Agenda 2. FINREP: the first step to a Dexia public taxonomy XBRL CEBS Workshop – Nov 07 - FINREP challenges - The FINREP Common Trunk (FINREP TC) - The link with our financial statements - The first step to a Dexias financial statements taxonomy - Introduction - Dexias views on XBRL development - Organization and structure - Some words on COREP 3. Conclusions

3 33 Introduction : What is Dexia? Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov 07 Dexia Holding: 23,2 EURBn Capitalization, world leader in public financing – Dexia Bank Belgium – Dexia Crédit Local (France) – Dexia BIL (Luxembourg) – FSA (Financial Security Assurance) – USA – Credit enhancement – Dexia Insurance Belgium – Deniz Bank (6th largest private bank in Turkey) – Factoring, leasing, real estate, IT, etc. A group of 241 entities, staff members and present in 33 countries

4 44 Introduction : What is Dexia? Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov 07

5 55 Organization and structure: the regulatory environment Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov 07 Home – host supervisors: Home supervisors (working in a college) –CBFA – Belgian Banking, Finance and Insurance Commission (as lead supervisor) –The French Commission Bancaire –Commission de Surveillance du Secteur Financier (Luxembourg) - CSSF Host supervisors –EU supervisors Bundesbank – Bafin (Germany) Banca dItalia (Italy) Banco dEspana (Spain) Etc. –Other countries BRSA (Turkey) SEC (USA) OFSI (Canada) Japan FSA Singapore Etc.

6 66 Organization and structure: the regulatory environment Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov 07 COREP and FINREP reporting: COREP –23 COREP to deliver to 12 different regulators –7 other Basel II reporting to other 7 regulators –Of which: 4 regulators requiring XBRL 3 using XBRL as an option FINREP –13 FINREP to deliver to 8 different regulators –Of which: 4 regulators requiring XBRL 3 using XBRL as an option

7 77 Organization and structure: infrastructure Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov 07 BE LU FR SAP Holding MAGNITUDE COMMON PARAM SPEC. LOCAL PARAM DBB DCL DBL STATUTORY CONSOLIDATED CONSO DHLD CONSO DBB CONSO DCL CONSO DBL VISUAL SCOPE MIS CONSO ESSBASE CHECK INTERNAL REPORTING EXTERNAL REPORTING

8 88 Organization and structure: infrastructure Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov 07 Accounting systems Management systems Booking entityX Files DMV3 INPUT datas Detailed results FERMAT RWA calculation engine Regulatory reporting Aggregated results Market risks Aggregated results Credit risks Aggregated results Operational risks Datas Equity COREP forms FINREP forms Aggergated results Accounting MAGNITUDE Market risk Operational Risk FERMATJ-Port

9 99 Dexias views on XBRL development Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov 07 Use XBRL as a tool for more harmonization, flexibility and gain of time both vertically and horizontally We thus need: –XBRL at the beginning of the reporting processes (public, COREP, FINREP and internal) –Softwares that read XBRL –One integrated database (kind of Group taxonomy) One fits all This is more efficient if XBRL used by non-regulators (Tax in Netherlands, AML in Spain, Ministry of Finance in Belgium, Central balance sheet offices, etc.)

10 10 Some words on COREP Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov 07 The main issue in COREP is the risk gathering, i.e. COREP is build using information from different departments working in different ways (FINREP is easier on this because produced by only one department): –Accounting, Operational risk and market risk decentralized on a centralized system –Credit risk centralized on a centralized system –Other banks may have other structures (but this is often the one chosen for cross-border groups) This combined with the national discretions for COREP implementation makes it a nightmare

11 11 Some words on COREP Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov 07 Etc. Finrrep xbrl Etc. Exel template FinrepXbrl taxonomy Finrep Creating Excel Construction XBRL and validation Excel template Belgian Corep Xbrl taxonomy Belgian Corep XBRL Corep Feed manuel corrections (automatic) UBMatrix/ ReportBuilder (XBreeze) Oracle Input via scripts Operational systems ETL BO universe XBRL database

12 12 FINREP challenges FINREP: the first step to a Dexia public taxonomy XBRL CEBS Workshop – Nov 07 Link with IFRS and banks financial statements National discretions: –CEBS guidelines not always clear –CEBS guidelines not always respected by member states –Changes in the business format may have insidious impact on the taxonomy (deleting a line changes the definition of the total – unless among which) –Additional information inconsistent with the CEBS format –Sometimes, regulators may give interpretations to IFRS rules Dimensions: –Preferred instead of tuples (link with IASCF?) –More standardization may be a benefit (exhaustive list of flows used throughout FINREP) –Definitions of some dimensions (counterparties => links with COREP, ECB, etc.) Translations may add confusion (or precision) Better definition of the concepts for the IASCF but not only (equity detail)

13 13 The FINREP CT: the principle FINREP: the first step to a Dexia public taxonomy The same information should be produced only once as such, certain elements have been defined as common i.e. : –Elements requested by the 3 mains regulators (CB, CBFA, CSSF) –Elements requested by the holding (in the consolidated financial statements) XBRL CEBS Workshop – Nov 07

14 14 The FINREP CT: practical issues FINREP: the first step to a Dexia public taxonomy Counterparties XBRL CEBS Workshop – Nov 07

15 15 The FINREP CT: examples FINREP: the first step to a Dexia public taxonomy CEBS B/S XBRL CEBS Workshop – Nov 07 CB B/S

16 16 The FINREP CT: examples FINREP: the first step to a Dexia public taxonomy CSSF B/S XBRL CEBS Workshop – Nov 07

17 17 The FINREP CT: examples FINREP: the first step to a Dexia public taxonomy CBFA B/S XBRL CEBS Workshop – Nov 07

18 18 The FINREP CT: examples FINREP: the first step to a Dexia public taxonomy Dexia B/S XBRL CEBS Workshop – Nov 07

19 19 The FINREP CT: examples FINREP: the first step to a Dexia public taxonomy Dexia B/S: links with Magnitudes chart of account XBRL CEBS Workshop – Nov 07

20 20 Links with our financial statements FINREP: the first step to a Dexia public taxonomy XBRL CEBS Workshop – Nov 07 According to the principles applied to FINREP, we have to map FINREP tables to the financial statements. It implies that: –Interpretations used for financial statements and mapping from financial statements to magnitude accounts have to be applied for FINREP –The detail in the financial statements have to be reproduced in FINREP –Analysis of the financial statements will be mapped to the FINREP tables

21 21 Links with our financial statements FINREP: the first step to a Dexia public taxonomy XBRL CEBS Workshop – Nov 07 Example 1: link from F/S to FINREP

22 22 Links with our financial statements FINREP: the first step to a Dexia public taxonomy XBRL CEBS Workshop – Nov 07 Example 2: additional detail

23 23 The first step to a first Dexias financial statements taxonomy FINREP: the first step to a Dexia public taxonomy XBRL CEBS Workshop – Nov 07 Taxonomies –IASCF –FINREP –CBFA –CB –CSSF Dexia ? –For financial statements –For FINREP –What would be the link with COREP taxonomy (if one could exist?) –For tax purposes ? –Others ?

24 24 Conclusions XBRL CEBS Workshop – Nov 07 Dexia has developed strong links between FINREP and its published financial statements. This will help for the Pillar 3 publication. From recent CEBS Public Hearing on supervisory reporting: –Long term: CEBS intention to have harmonized reporting for 2011 –Short term: Issues : differences in procedure, definitions, national implementation and IT Solutions: –Group-wide basis –Home-host perspective –Where it is relevant –Case by case basis. Promote FINREP outside Europe (Morocco, Croatia and others)


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