1 XBRL Pilot Project at BOJ May 2004 Yoshiaki Wada Bank Examination and Surveillance Department Bank of Japan © 2004 Bank of Japan

2 1 ． The role of the BOJ and the importance of Information Infrastructure within Financial Systems Range of FSIs covered by BOJ on-site Examination and off-site Monitoring © 2004 Bank of Japan Positioning of the BOJ in the financial information supply chain The BOJ way to provide and receive different types of information and apply them to FSI supervision

3 Range of FSIs covered by BOJ on-site Examination and off-site Monitoring © 2004 Bank of Japan about 560 FSIs (end of March 2004) Major Banks Regional Banks Shinkin Banks Foreign Banks Securities Firm etc.

4 BOJBOJ FSA Tax office Tokyo Stock Exchange Tokyo Stock Exchange Accountant’s office Accountant’s office Information vendor Think tank Credit risk information DB Information vendor Think tank Credit risk information DB Rating Agency Rating Agency Audit corporation, etc. Company Stock market, Investors, etc. Taxpayer Credit Guarantee Corporation Credit Guarantee Corporation Other FSIs Investor Credit guarantee Security liquidity Announcement of financial statements/IR Loan SyndicationBorrower Positioning of the BOJ in the financial information supply chain Firms Risk management Accounting © 2004 Bank of Japan Bank Bank Reports

5 The BOJ way to provide and receive different types of information and apply them to FSI supervision © 2004 Bank of Japan Applicability of XBRL BOJ FSI Corporation BOJ net Reporting systems, incl. VPN online data gathering system Host system PC system File format conversion Character code conversion DBs original format Individuals Files Papers Host computer File format conversion Character code conversion Key entry Character code conversion PC Accounting table creation File creation Storage Intranet Application to FSI supervision (data format for printing) Vertical and horizontal position and data specification Financial DB Text format Excel, Word, Text, CSV, XML Paper-based Publication of a variety of statistics

6 2 ． Understanding the pilot project Project overview Project history Project flow © 2004 Bank of Japan

7 Project overview Purpose © 2004 Bank of Japan ・ Promote understanding of XBRL within the FSIs ・ 4 banks that had already joined XBRL-Japan (as of November, ) Tokyo-Mitsubishi, Sumitomo-Mitsui, UFJ and Mizuho ・ Accounting tables for monthly balances ・ Data transfer between the BOJ and FSIs. In addition, a study on the applicability to other FSI businesses. Participants Target reports Scope and timing of the test ・ Verify both the technical and operational usefulness of XBRL ・ Started in December 2003 and finished in March 2004.

8 Project history © 2004 Bank of Japan Preparation for the test Investigation Hearing Taxonomy creation Functional development Tool evaluation Join XBRL - Japan Validity test Briefing to executives Formula link creation Session with participated FSIs Phase 1 of the project June, 2003 July – Sept. Oct. Nov. – Dec. January, 2004 March After April Test evaluation Phase 2 of the project Request for cooperation

9 Project flow FSI BOJ ② Presentation of taxonomy, technical documents, etc. ③ Taxonomy verification Promote understanding of technical information ① Creation of taxonomy, etc. Technical study ④ Report file creation in XBRL format ⑥ File recreation/ verification ⑦ Evaluation/fe ed back ⑤ Sends report file Reports A Report Report A Report B Report C Report A Report B Report C © 2004 Bank of Japan Ordinary profits Current profits K K …… Element name Item name

10 3 ． Test summary Test results Further application possibilities Interim evaluation © 2004 Bank of Japan

11 Test results © 2004 Bank of Japan Optional menu Building of taxonomy and Formula Link by the BOJ Creation of XBRL instance documents by participating banks Restoration of XBRL instance documents by the BOJ - Confirmed compatibility of the taxonomy with different tools and validity of the Formula Link - Satisfactory data import from Excel files into instance documents - Confirmed reproducibility of data from instance documents - Some participants partial ｌ y edited the taxonomy

12 Further application possibilities © 2004 Bank of Japan Improved IR quality Faster loan assessments Reuse of business data for credit guarantees and loan syndications Integration of various data systems within a bank Build up of a sophisticated credit risk evaluation system

13 Interim evaluation XBRL Effectiveness of Formula Link Importance of the installation environment Importance of the tools for verification and analysis Necessity for BPR to exploit XBRL ‘s merits Phase 1 of the project Study of the database structure that fits the business purpose Interface with legacy systems Affinity between XBRL tools and user PCs (e.g., version of OS) High requirement for end user analysis © 2004 Bank of Japan Formula Link Need for advanced technology Mapping Link, Versioning Link

14 And now for the last word --- © 2004 Bank of Japan

15 Thank you for listening. © 2004 Bank of Japan