Spanish implementation of the New Basel Capital Accord Víctor Morilla Ángeles Lozano

Moving towards XBRL based solutions 2003: Pilot project to receive information from appraisal companies 2004: Project for leading and planning the deployment of XBRL at the Bank of Spain2004: Infrastructure for development and deployment of XBRL systems 2005: System for the submission of public statements Under development/analysis: New Basel’s Accord Solvency Information Central Balance Sheet Data Office questionnaires Reserved Statements of Financial Entities

Project planning First half of 2007 capital requirements will be sent using XBRL by September 2007. Analysis will be finished by June 2006 Spanish COREP taxonomy will be ready by October 2006 Analysis Taxonomy Development Testing Jun 2006 Oct 2006 Sep 2007

Project requirements Providing a safe channel to submit capital requirements statements Having small impact on current legacy systems Automatically identifying errors and problems with filings Providing helper services to facilitate XBRL adoption by credit institutions

SIIF Project System for the submission of public statements working since July 2005: Taxonomy based on ifrs-gp (es-be-fs) XBRL documents sent by e-mail Helper services provided: XBRL documents validation XBRL documents visualization Taxonomy visualization Converter from old plain text format to XBRL Spanish COREP implementation will be based on this project

SIIF Project Architecture EAI Access Channel Activity record Activity recording User Reply Translation to plain text Validation Activity recording User Reply Translation to plain text Interface to storage system Host XBRL DOCS Plain text - Deciphering Authentication Access control Activity recording User Reply Translation to plain text Helper Services Front-End Fulfilment state DB Fulfilment state query Pre-validation Visualization XBRL Web Services Presentation Validation ISV XBRL Engine

What’s new in the COREP project Complexity of COREP taxonomy and use of dimensions impacts on: Mapping to storage on host Validation Visualization and validation helper services Plain text to XBRL conversion More complex checks and formulas applied New business requirements

SIIF DB Mapping layer One to one mapping from XBRL items to old database cells FinancialLiabilitiesHeldForTradingTotal

COREP DB Mapping layer One to many mapping from combinations of XBRL items and dimension values to old database cells Item: AllPositionsLong Dim1: MaturityLadderApproach

Validation and visualization Current XBRL validation service (not dimension-aware) to be upgraded Dimensional data to be rendered for business users visualization

Complex checks Operations not supported by calculation linkbase Arithmetic comparisons Operations between contexts Checking for the presence of items if some rules apply Comments are mandatory in some conditions Statements of different periodicities Probably, COREP Spanish taxonomy will use current formula draft to express these complex checks

New business requirements Manual edition Providing a tool to allow credit institutions that cannot automatically extract information from their systems Footnotes management Capital requirements footnotes will contain some comments about data submitted E-Mail notification Notifying credit institutions about pending submissions

Conclusions This project will take advantage of infrastructure and experience from previous project Spanish COREP project is a big chance to learn and take advantage from new and powerful XBRL features It is an important step towards the deployment of XBRL in Spain

Thanks for your attention Time for questions