Presentation on theme: "European Banking Supervision: COREP and FINREP Taxonomies Roadmap"— Presentation transcript:
1European Banking Supervision: COREP and FINREP Taxonomies Roadmap 19th XBRL International Conference “Reducing regulatory burden with XBRL: a catalyst for better reporting” June 22-25, 2009 Paris, FranceEuropean Banking Supervision: COREP and FINREP Taxonomies RoadmapIgnacio Boixo, Banco de España Katrin Schmehl, Deutsche Bundesbank 24th June 2009
3European System of Financial Supervisors Steering CommitteeEuropeanBankingAuthority(EBA)European Insuranceand OccupationalPensionsAuthority(EIOPA)EuropeanSecuritiesAuthority(ESA)NationalBankingSupervisorsNational Insuranceand PensionsSupervisorsNationalSecuritiesSupervisorsESFS: Micro-prudential information3
4Collect micro-prudential information The European Supervisory Authorities should be responsible for the aggregation of all relevant micro-prudential information emanating from national supervisors.A Central European Database should be established and managed by the European Supervisory Authorities.The information would be available for the relevant authorities in colleges of supervisors4
5European Supervisory Authorities New European Supervisory Authorities working in tandem with the national financial supervisors…. building upon the existing structuresOpposed to solutions such as full centralisation of supervisionStrengthened framework will be up and running in The information may be forwarded in aggregated and/or anonymous format to the ESRC.5
6European System of Financial Supervisors Three European Supervisory AuthoritiesEuropean Banking Authority (EBA)European Insurance and Occupational Pensions Authority (EIOPA)European Securities Authority (ESA)Appropriate national supervisory authoritiesCross-sectoral cooperation, in addressing cross-sectoral challenges, including financial conglomerates6
7Race is just started! European Commission proposed on May 27 ECOFIN: European Ministries of Economy approved on June 9European Heads of State or Government endorsed on June 187
8COREP and FINREP roadmap 20092010201120122013COREPFINREPDesign phaseConsultation phaseDecision phaseTransposition phaseApplication phaseNote: Possible changes to the Capital Requirements Directive are in discussion!8
9Collaborative Tasks in Detail Business Experts TrackIdentification of the measuresIdentification of common elementsTaxonomy Development TrackNormalisation of the templatesBusiness Experts Track /Taxonomy Development TrackIdentification of IFRS elements relevant for FINREPDefinition of thedata typesInstant or durationDebit or creditCommon labels
10Collaborative Tasks in Detail Business Experts TrackDefinition of validation rules Preparation of meaningful test casesTaxonomy Development TrackCreation of schema matrixesBusiness Experts Track /Taxonomy Development TrackQuality insurance by peer-2-peer review and business reviewTaxonomy Development TrackDefinition of design principles for the FINREP taxonomy10
11Collaborative Tasks in Detail Taxonomy Development TrackCreation of a draft FINREP taxonomyTaxonomy Development TrackReverse engineering into schema matrix by an application and alignment check with agreed schema matrixTaxonomy Development TrackPreparation of test casesTaxonomy Development TrackPublic review period11
12Further Tasks Taxonomy Development Track Taxonomy Development Track Definition of design principles on formulasTaxonomy Development TrackCreation of the European formula linkbaseTaxonomy Development TrackCreation of documentation on taxonomy architecture12
13Identification of the measures and dimensions Business Experts TrackIdentification of the measuresIdentification of common elementsdimensionmeasurescommon elementsMakes FINREP understandable for IT purposes !
14Normalisation of the templates Taxonomy Development TrackNormalisation of the templatesmeasuresdimensiondimensionNo impact on changes in the presentation !
15Identification of IFRS elements FINREPIFRSBusiness Experts Track /Taxonomy Development TrackIdentification of IFRS elements relevant for FINREPThe amount of fitting elements could be relatively small.
16Creation of schema matrixes Taxonomy Development TrackCreation of schema matrixesWhat the supervisors ask for!What is being defined by IT!EXCEL viewXBRL view
17Creation of schema matrixes Taxonomy Development TrackCreation of schema matrixesEXCEL viewXBRL viewSchema matrix view
18Taxonomy Development Track Design principlesTaxonomy Development TrackDefinition of design principles for the FINREP taxonomyOne schema for the primariesOne schema per dimension.dimension .XSDcommonprimaries .XSDtemplate .XSDimports
19Taxonomy Development Track Design principlesTaxonomy Development TrackDefinition of design principles for the FINREP taxonomyComprehensive Error MessagesXBRL dimensional error messages aren’t sufficient.Element name is not comprehensive.Banking supervisors work with national labels or position numbers.When labels essentially change, the element names would be adapted.
20Taxonomy Development Track p-sd:ConversionFactorApplied Design principlesTaxonomy Development TrackDefinition of design principles for the FINREP taxonomyComprehensive Error MessagesWhen the element name is not comprehensive,p-sd:ConversionFactorAppliedwhy not using a codification?p-sd:p122365Advantages:+ Easier to read by technical staff + Size of the instance is considerably smaller + More stability
21Design principles Taxonomy Development Track Definition of design principles for the FINREP taxonomyComprehensive Error MessagesSolution:+ Usage of formula linkbase + Assignment of an error description + Definition of error description in national languagesInstance:Taxonomy:<p-sd:p122365>150.00</p-sd:p122365>ConversionFactorAppliedPossible validation result: The value of should be smaller than but the reported value isConversionFactorApplied150.00
22Taxonomy Development Track Defined by using the Definition Linkbase Design principlesTaxonomy Development TrackDefinition of design principles for the FINREP taxonomyHow to modularise the European taxonomyDefined by using the Definition LinkbaseXBRL dimensional error messages aren’t comprehensive.Possible validation result: The following check is not valid: “p | s1 | c1” :ConversionFactorAppliedScope of ConsolidationCRDDefined by using the Formula Linkbase|
23Taxonomy Development Track Design principlesTaxonomy Development TrackDefinition of design principles for the FINREP taxonomyTo be discussed:+ Usage of open / closed hypercubes+ Usage of default values+ Usage of typed dimensions+ Definition of administrative data (header information)+ How to define European formulas+ Reduction of constraints
24Test cases and examples Taxonomy Development TrackPreparation of test cases+ Creation of XBRL formulas on basis of Excel formulas defined in the spreadsheets+ Creation of sample test cases based on the provided numbers
25FINREP superset of reports ModularisationCurrent situation !How changes were adapted to the national needs?Expected:FINREP superset of reportsCustomreportLargereportSmallreportCustomreportRealised:MediumSmallMediumreport
26Presentation Linkbase ModularisationSituation in the future!How changes will be adapted to the national needs?European ApproachDefinition LinkbaseFormula LinkbaseCEBStaxonomy .XSDLabel Linkbase(s)Presentation LinkbaseNational ApproachNationalDefinition LinkbaseCEBStaxonomy .XSDFormula LinkbaseLabel Linkbase(s)Presentation LinkbaseNo changes on concepts !Only additional linkbases !
27Best Practices+ Harmonisation efforts on basis of the XBRL instances
28Presentation Linkbase DeliverablesWhat is going to be provided?Definition LinkbaseFormula LinkbaseCEBStaxonomy .XSDLabel Linkbase(s)Presentation LinkbaseEuropean ApproachSchema matrixesHeadertaxonomy .XSDLabel LinkbaseTest casesTaxonomy Architecture DocumentationFormula Documentation+
29Further updates at www.eurofiling.info Questions?