1. European 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, France
European Banking Supervision: COREP and FINREP Taxonomies Roadmap
Ignacio Boixo, Banco de España Katrin Schmehl, Deutsche Bundesbank 24th June 2009

2. European Financial Stability2

3. European System of Financial Supervisors
Steering Committee
European
Banking
Authority
(EBA)
European Insurance
and Occupational
Pensions
Authority
(EIOPA)
European
Securities
Authority
(ESA)
National
Banking
Supervisors
National Insurance
and Pensions
Supervisors
National
Securities
Supervisors
ESFS: Micro-prudential information 3

4. Collect 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 supervisors 4

5. European Supervisory Authorities
New European Supervisory Authorities working in tandem with the national financial supervisors…. building upon the existing structures
Opposed to solutions such as full centralisation of supervision
Strengthened framework will be up and running in The information may be forwarded in aggregated and/or anonymous format to the ESRC. 5

6. European System of Financial Supervisors
Three European Supervisory Authorities
European Banking Authority (EBA)
European Insurance and Occupational Pensions Authority (EIOPA)
European Securities Authority (ESA)
Appropriate national supervisory authorities
Cross-sectoral cooperation, in addressing cross-sectoral challenges, including financial conglomerates 6

7. Race is just started! European Commission proposed on May 27
ECOFIN: European Ministries of Economy approved on June 9
European Heads of State or Government endorsed on June 18 7

8. COREP and FINREP roadmap
2009
2010
2011
2012
2013
COREP
FINREP
Design phase
Consultation phase
Decision phase
Transposition phase
Application phase
Note: Possible changes to the Capital Requirements Directive are in discussion! 8

9. Collaborative Tasks in Detail
Business Experts Track
Identification of the measures
Identification of common elements
Taxonomy Development Track
Normalisation of the templates
Business Experts Track /
Taxonomy Development Track
Identification of IFRS elements relevant for FINREP
Definition of the
data types
Instant or duration
Debit or credit
Common labels

10. Collaborative Tasks in Detail
Business Experts Track
Definition of validation rules Preparation of meaningful test cases
Taxonomy Development Track
Creation of schema matrixes
Business Experts Track /
Taxonomy Development Track
Quality insurance by peer-2-peer review and business review
Taxonomy Development Track
Definition of design principles for the FINREP taxonomy 10

11. Collaborative Tasks in Detail
Taxonomy Development Track
Creation of a draft FINREP taxonomy
Taxonomy Development Track
Reverse engineering into schema matrix by an application and alignment check with agreed schema matrix
Taxonomy Development Track
Preparation of test cases
Taxonomy Development Track
Public review period 11

12. Further Tasks Taxonomy Development Track Taxonomy Development Track
Definition of design principles on formulas
Taxonomy Development Track
Creation of the European formula linkbase
Taxonomy Development Track
Creation of documentation on taxonomy architecture 12

13. Identification of the measures and dimensions
Business Experts Track
Identification of the measures
Identification of common elements
dimension
measures
common elements
Makes FINREP understandable for IT purposes !

14. Normalisation of the templates
Taxonomy Development Track
Normalisation of the templates
measures
dimension
dimension
No impact on changes in the presentation !

15. Identification of IFRS elements
FINREP
IFRS
Business Experts Track /
Taxonomy Development Track
Identification of IFRS elements relevant for FINREP
The amount of fitting elements could be relatively small.

16. Creation of schema matrixes
Taxonomy Development Track
Creation of schema matrixes
What the supervisors ask for!
What is being defined by IT!
EXCEL view
XBRL view

17. Creation of schema matrixes
Taxonomy Development Track
Creation of schema matrixes
EXCEL view
XBRL view
Schema matrix view

18. Taxonomy Development Track
Design principles
Taxonomy Development Track
Definition of design principles for the FINREP taxonomy
One schema for the primaries
One schema per dimension .
dimension .XSD
common
primaries .XSD
template .XSD
imports

19. Taxonomy Development Track
Design principles
Taxonomy Development Track
Definition of design principles for the FINREP taxonomy
Comprehensive Error Messages
XBRL 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.

20. Taxonomy Development Track p-sd:ConversionFactorApplied
Design principles
Taxonomy Development Track
Definition of design principles for the FINREP taxonomy
Comprehensive Error Messages
When the element name is not comprehensive,
p-sd:ConversionFactorApplied
why not using a codification?
p-sd:p122365
Advantages:
+ Easier to read by technical staff + Size of the instance is considerably smaller + More stability

21. Design principles Taxonomy Development Track
Definition of design principles for the FINREP taxonomy
Comprehensive Error Messages
Solution:
+ Usage of formula linkbase + Assignment of an error description + Definition of error description in national languages
Instance:
Taxonomy:
<p-sd:p122365>150.00</p-sd:p122365>
ConversionFactorApplied
Possible validation result: The value of should be smaller than but the reported value is
ConversionFactorApplied
150.00

22. Taxonomy Development Track Defined by using the Definition Linkbase
Design principles
Taxonomy Development Track
Definition of design principles for the FINREP taxonomy
How to modularise the European taxonomy
Defined by using the Definition Linkbase
XBRL dimensional error messages aren’t comprehensive.
Possible validation result: The following check is not valid: “p | s1 | c1” :
ConversionFactorApplied
Scope of Consolidation
CRD
Defined by using the Formula Linkbase |

23. Taxonomy Development Track
Design principles
Taxonomy Development Track
Definition of design principles for the FINREP taxonomy
To 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

24. Test cases and examples
Taxonomy Development Track
Preparation 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

25. FINREP superset of reports
Modularisation
Current situation !
How changes were adapted to the national needs?
Expected:
FINREP superset of reports
Custom
report
Large
report
Small
report
Custom
report
Realised:
Medium
Small
Medium
report

26. Presentation Linkbase
Modularisation
Situation in the future!
How changes will be adapted to the national needs?
European Approach
Definition Linkbase
Formula Linkbase
CEBS
taxonomy .XSD
Label Linkbase(s)
Presentation Linkbase
National Approach
National
Definition Linkbase
CEBS
taxonomy .XSD
Formula Linkbase
Label Linkbase(s)
Presentation Linkbase
No changes on concepts !
Only additional linkbases !

27. Best Practices
+ Harmonisation efforts on basis of the XBRL instances

28. Presentation Linkbase
Deliverables
What is going to be provided?
Definition Linkbase
Formula Linkbase
CEBS
taxonomy .XSD
Label Linkbase(s)
Presentation Linkbase
European Approach
Schema matrixes
Header
taxonomy .XSD
Label Linkbase
Test cases
Taxonomy Architecture Documentation
Formula Documentation +

29. Further updates at www.eurofiling.info
Questions?