7th xbrl workshop1 CENTRAL BANK OF CYPRUS IMPLEMENTATION OF COREP & XBRL VII European Banking Supervisors XBRL Workshop Munich, 9 May 2007

7th xbrl workshop2 Banking Environment in Cyprus 16 banks (9 subsidiaries of foreign banks) Branches of foreign banks Operations – mainly lending & deposit taking Previously foreign exchange controls No trading, only hedging Low market risk Central Bank of Cyprus

7th xbrl workshop3 the templates published by CEBS: ready sufficient level of detail flexibility available reference list Situation Analysis Central Bank of Cyprus

7th xbrl workshop4 Available transmission methods : Hard copy Laborious in terms of preparation and further processing Electronically Excel files – no control over formats, data syntax errors, limitations in processing ASCII – no control, development from scratch Situation Analysis – 2 Central Bank of Cyprus

7th xbrl workshop5 IT resources: lack of know-how and expertise in xbrl / taxonomies focus on smooth transition to Euro Banking Sector lack of know-how and expertise in xbrl Standardised approach Situation Analysis – 3 Central Bank of Cyprus

7th xbrl workshop6 Situation Analysis – 4 Article 152 Discretion for extension of implementation of CRD & COREP Expected requests for exercise of discretion by many banks Time for CBC & banks to acquire know-how & expertise in xbrl Central Bank of Cyprus

7th xbrl workshop7 COREP Full adoption – no deletions / additions References to CBC directive Explanations XBRL Use of off-the-shelf tool Outsource THE DECISION Central Bank of Cyprus

7th xbrl workshop8 Step 1 – Liaison with banks Presentation by P. Voulgaris XBRL : creating and transmitting an xbrl instance automated and manual systems COREP & taxonomy concepts Constructive Feedback Stage of preparation Major Problems Set up of Queries Process Central Bank of Cyprus

7th xbrl workshop9 Step 2 – Data Exchange Expansion of Existing Infrastructure secured exchange of xbrl files (instances) e-business platform Installation of new technology for encryption / decryption of files Use of digital signatures Central Bank of Cyprus

7th xbrl workshop10 Step 3 – Validation of xbrl files 1. Xwand – Fujitsu tool Validation checks incorporated in taxonomies Drawback: no monitoring controls viz a vis, reporting bank / period and completeness of templates E-business application Accountability Reference date Template definition Testing by one bank validation errors revealed, corrected and resubmitted successfully (automatic input to excel, mapping excel to taxonomy, instance created by off-the-shelf tool) Central Bank of Cyprus

7th xbrl workshop11 Step 3 – Validation contd 2. Outsource – software solution (under implementation) Additional validation (second) using a customised application through a set of predefined interfaces (prepared internally) Additional validations and controls as agreed with CBC Validation results in a format understandable by users Central Bank of Cyprus

7th xbrl workshop12 Step 4 - Visualisation 1. XWAND – Fujitsu tool Two options: Automated processing of xbrl files into html / xls files – not followed Manual processing one-by-one conversion of xbrl files into HTML format in a shared area Problem encountered: The visualisation result was not the anticipated COREP template Extra effort is required to convert the data in xls format Central Bank of Cyprus

7th xbrl workshop13 2. Custom-made solution Automated Data transformation mapping of data from xbrl file into xls file Expected Output : XLS file in the same format as the prescribed COREP templates Step 4 - Visualisation Central Bank of Cyprus

7th xbrl workshop14 Step 5 - Processing Using the software solution Load Data to Internal System The xml files will be mapped into a relational database (Oracle) and passed as input to the internal system of CBC Processing of data Production of Reports e.g. aggregation reports, comparison reports Indicators Central Bank of Cyprus

7th xbrl workshop15 TARGET Know-how & expertise in Taxonomy editing Further analysis on COREP templates Accommodate possible changes on COREP templates by CEBS Central Bank of Cyprus

7th xbrl workshop16 Thank you ! Mary Kyriakidou Banking Supervision and Regulation Department Central Bank of Cyprus Central Bank of Cyprus