1. Secrétariat général de la Commission bancaire
COREP - FINREP - XBRL
The French Banking Commission approach
VII European Banking Supervisors XBRL Workshop
Munich, may 2007
Sylviane DELARUE
Jerome POUPARD
COFINREP Project
SGCB
COREP - FINREP - XBRL

2. COREP- FINREP- XBRL The French Banking Commission approach
1 • Project objectives : a european framework
2 • Consequences on our IT system
3 • Challenge : managing complex taxonomies
4 • The French Banking Commission COFINREP project
5 • COFINREP : technical choices - XBRL learning curve

3. 1. Project objectives : a european framework
The objectives of Committee of European Banking Supervisors :
Harmonising banking supervision practices in Europe, and developing a common supervisory culture
Reducing unnecessary costs of reporting to the banking supervisors through European convergence
In order to fulfill this goal, need for :
The definition of a common framework
A common vocabulary based on the European legislation
A degree of flexibility in order to adapt to national specifics.

4. 1. Project objectives : a european framework
Two european initiatives :
A common reporting for a common solvency ratio (COREP – COmmon REPorting)
CRD Directives
14 June 2006: final adoption of Directives 2006/48/CE et 2006/49/CE
COREP
13 January 2006: CEBS publishes COREP templates =>
December 2005/ juin 2006 : Discussion with the banking industry on the French reporting
Adoption of the French COREP project by the Banking Commission 26 March 2007

5. 1. Project objectives : a european framework
A common « supervisory financial » reporting for banks consolidated accounts in IFRS (FINREP, FINancial REPorting)
European regulation introducing IFRS is directly applicable in Europe
European reporting published by the CEBS on 16 December 2005 =>
Adoption of the French FINREP project by the Banking Commission on 28 June 2006
1st remittance date for COREP and FINREP June in France

6. 1. Project objectives : a european framework
XBRL taxonomies built by the CEBS for COREP and FINREP are essential in order to create a common framework. They include :
A common vocabulary for European supervisors, elaborated on the basis of official European regulations and
A common « grammar » through its « Linkbases ».
XBRL allows for a european flexible approach, including national specific elements
But XBRL standard must also keep pace with the evolution of business requirements, and the complexity of COREP and FINREP reportings.

7. 2 • Consequences on our IT system
The French Banking Commission decided to make it mandatory for the banks to transmit their COREP and FINREP reports, using the XBRL standard for reasons of efficiency and cost.
The working relation between banks and the BC will change only marginally :
The General Secretary of the Banking Commission has provided the banks with the adapted French version of the European taxonomies
The financial institutions will transmit their reports (instance documents according to XBRL vocabulary) XML/XBRL, via the usual data transmission means
After verification of data quality, anomalies will be restituted to each institution

8. 2 • Consequences on our IT system
The Banking Commission decided to go further in the adoption of XBRL/XmL, for the following reasons :
First, our present data system, BAFI, is a proprietary one, only used for the exchange of data between the French financial institutions and the Banking Commission/Bank of France
BAFI is now a mature system (1993) which was due to evolve in the coming years (very complex legacy in mainframe technology : >1000 programs)
Communication with many applications inside and outside and a much parameterised system (single window betwen financial institutions and BOF).
XmL has become a standard in data transmission which imposes itself in the banking industry

9. 2 • Consequences on our IT system
In a first stage, need to run two parallel information systems : COFINREP and BAFI
Possible since :
Relatively few common data between the new reportings and the present data base
COREP and FINREP are new and would have, in any case, needed important and complex developments in the old system
This situation will not hinder the supervisors’ work
However, we will need to run data exchanges between both systems

10. 2 • Consequences on our IT systems
BAFI
Financial
Institution
Information
System
Accreditation
Input
Output
Civil statuts data
Configuration
Prudential and accounting Reporting
Inside
applications
CB/BDF
Bâle II
SIGNECB
COREP Instances
Data
Control
and
management
IFRS
Data
mining
FINREP Instances
XBRL
Taxonomy management
Accreditation
COFINREP

11. 2 • Consequences on our IT system
The second stage (after COFINREP) : we intend to move on with the rest of the reporting system and to have a single data exchange system with the financial institutions.
In order to achieve this, we will have to :
Create taxonomies regrouping all necessary data for supervisors
Add the necessary functionnalities to the new system
Do the same thing with the other data managed by BAFI (statistics data, monetary data….).

12. 3 • Challenge : managing complex taxonomies
Banking Commission decided to create and manage in-house the French versions of COREP and FINREP taxonomies
COREP: about 800 entities concerned
FINREP: about 80 entities concerned
Final users : 280 supervisors and inspectors
Team of 3 taxonomy managers (and 2 experts)

13. 3 • Challenge : managing complex taxonomies
French version of COREP
project considered too complex and too detailed
30 templates
data
19 templates
14000 data
with
1100 data with a possible postponement
 8300 data asked in standard approach and 6000 in IRBA approach

14. 3 • Challenge : managing complex taxonomies
French version of FINREP
The CP06, published in april 2005, considered too complex and too détailed
The final version of CEBS (12/2005) took care of these criticisms
The french version (06/2006) reduce even more the reporting
39 templates(CEBS)
2.400 data
29 templates (France)
1.500 data
with
400 data (9 templates) yearly
1100 data (20 templates) half yearly

15. 3 • Challenge : managing complex taxonomies
Creation of the French versions on the basis of the European taxonomies
All the labels of concepts coming from the European taxonomies translated into French
Creation of a limited number of French specific concepts (with an English and French label)
Internal validation of the taxonomies with the help of our tools (formalism and standards) and our supplier

16. 3 • Challenge : managing complex taxonomies
European taxonomies were available at the end of september for FINREP and on the 6th of october for COREP:
French versions :
FINREP => version for discussion (0.1) published on the Banque de France website on 26 october 2006
- version january 2007
- approved version 1.0 : 5 february 2007
COREP => version for discussion (0.1) published on 1st december 2006

17. 3 • Challenge : managing complex taxonomies
French taxonomy
definitions
Professional’s
Feed back
Validated
taxonomies
Launch T A X O N M Y
Taxonomy editing tool
delivery, getting started
and training
Taxonomy extensions
Taxonomy finalization
Project management and supervision
02/2007
First draft
European
taxonomies
01/2006
Final version european
Taxonomies & Beginning
of French taxonomies
09/2006
Taxonomies
available for the
professional public
10/2006

18. 4. The Banking Commission COFINREP project
SCOPE
French taxonomies management (VERSIONING)
Data reception management
Electronic signature of the instance documents
Authorisations and reference data management
Controls of received instances
Reminders in case of anomalies or late data transmission
Synthesis and reporting according to the needs of the supervisors
Interface with the others systems of BDF
Automatisation of the processes P O R T A L V 1
La directive européenne = référence commune
tendance > séparation des orientations comptables et prudentielles
FINREP conduit par la Belgique
Dans cad III 3thématiques sont abordées : risques de marché, risque de crédit, risque opérationnel, même standardisation au niveau international
l ’ensemble des EC sera impacté
Les superviseurs travaillent sur des normes de calcul et plus de cohérence entre normes comptables et prudentielles,
Conception de 25 tableaux déclinés en 170 combinaisons différentes
Le nombre de docts existant dans BAFI sera multiplié par 2 suite à CAD III
Il sera pris en compte pour 1 établissement du fait qu ’il dispose d ’outils + / - fins pour la prise en compte de sa politique de risque P O R T A L V 2

19. 4. The Banking Commission COFINREP project
Go live
Portal V1
Go live
Portal V2
Launch
Validation
Global
conception P O R T A L
Portal V.1
La directive européenne = référence commune
tendance > séparation des orientations comptables et prudentielles
FINREP conduit par la Belgique
Dans cad III 3thématiques sont abordées : risques de marché, risque de crédit, risque opérationnel, même standardisation au niveau international
l ’ensemble des EC sera impacté
Les superviseurs travaillent sur des normes de calcul et plus de cohérence entre normes comptables et prudentielles,
Conception de 25 tableaux déclinés en 170 combinaisons différentes
Le nombre de docts existant dans BAFI sera multiplié par 2 suite à CAD III
Il sera pris en compte pour 1 établissement du fait qu ’il dispose d ’outils + / - fins pour la prise en compte de sa politique de risque
Portal V.2
06/2006
07/2006
06/2007
01/2008
Project management and supervision

20. 4. The Banking Commission COFINREP project
Choice of a generic software :
very short deadlines
use XBRL as far as possible
Legal process for open tender :
Open tender : 7 december 2005
Emission of specifications : 3 february 2006
Choice of solution : may 2006
Chosen software meets 50% of users’ requirements in the basic version
50% of specific developments taken in charge by the supplier
Supplier team (5 to 10 people), internal IT team (4 to 6)

21. 5 • COFINREP : technical choices - XBRL learning curve
Main challenges :
Dealing with very complex taxonomies, using dimensions extensively (new standard 1.0 created COREP)
Lack of maturity of existing softwares, in particular taxonomy editors, not always compatible
Training offer is still very limited
Lack of formulae standard, which makes it compulsory to develop in-house business rules
The question of “versioning” management is urgent and should be a priority for the months ahead

22. 5 • COFINREP : technical choices - XBRL learning curve
The added XML header: why?
Electronic signature
<fichier>
< enveloppe>
<XBRL>
+ To be able to sign multiple instances
+ So that habilitation testing are not XBRL dependent
+ For better « on the fly » performance on instance reception
Added consistency tests
Note: the XML schema of the header is available at:

23. 5 • COFINREP : technical choices - XBRL learning curve
The workflow of an instance
Definition: an instance in COFINREP, is an XBRL instance limited to a single entity, a single taxonomy, single date and single money (iso421U7).
Definition: The private taxonomy is an extension of our public taxonomy with added controls non compatible with all the existing tools, thus they cannot be shared. These « added » controls are described in the Excel files on the BDF website.

24. 5 • COFINREP : technical choices - XBRL learning curve
The workflow of an instance
During the day:
1. Reception of files
2. If signed, control of the signature and rights to sign
3. Control of the header format (control that all the data is declared production OR simulation in a same file). Implicit XML well-formedness check.
4. Check of the identity of the sender

25. 5 • COFINREP : technical choices - XBRL learning curve
The workflow of an instance
During the night, for every file that passed control 3 during the day:
1. The files are broke down into XBRL instances with a xml header
2. we take the latest file for each key (entity, date, taxonomy)
3. Full validation of instance (public taxonomy) and added controls
4. If no errors, validation with private taxonomy.
5. The instance will then be used for: extraction to other application, transverse reports
6. report to the financial agents on the status of the instances sent

26. 5 • COFINREP : technical choices - XBRL learning curve
Focus on: Control and storage of an instance #
Contrôle
Process stop
Production
Simulation 1
In case of a COREP instance, check that the value of the option in the header is properly set to « consolidated » or « social »
yes X 2
XBRL 2.1 3
Aggregations and dimensions 4
Calculation links no 5
Uniqueness of key (entity, date, taxonomy) in instance 6
Coherence of entity between header and instance
Existence of entity in database
Manual verification 7
Coherence of date between header and instance
Existence of date in database 8
Coherence of taxonomy between header value and instane’s schemaref
Validity of the taxonomy and the reported date 9
Coherence of currency between header value and instance declaration (iso4217 only)
Validity of currency for the entity (database). 10
Is type COREP or FINREP expected for entity
COREP only: is entity authorized for the option declared in the header (consolidated, social)
COREP only: is entity authorized for the approach value in the header, and the values present in the instance. (standard, foundation, advanced).
COREP only: is the date of the reporting in the instance coherent with the entity’s status
- Mars, June, September and December for large groups
- June and December only for small groups

27. Corporate Directory Server: BAFI … Reference data management
5 • COFINREP : technical choices - XBRL learning curve
BACKEND
Financials institutions (submitters)
INTRANET
EXTRANET
- Taxonomy creation
- Instance management
- Taxonomy published
- Intances workflow
Instance
Document
Instance
Document
Instance
Document
Instance
Document
Receipt Management
Taxonomy
Taxonomies
Reception
Management
Instance
Document
Instance
Document
Databases
servers
Taxonomy
management
Reporting synthesis
Conception
Reporting calculation
Control and
storage
Amounts ctrl.
BAFI/COFINREP
Comparision
Taxonomy
control
Taxonomy
Taxonomy
Mistakes/Errors
Corporate Directory Server: BAFI …
Habilitations
Reporting
Extraction
COFINREPReporting
Errors
Reporting synthesis
Reference data management

28. 5 • COFINREP : technical choices - XBRL learning curve
The test platform: a compatibility check
The platform opened up in the beginning of March.
Within one month we received 4 instances
Instances were mostly FINREP
Result :
3 instances: 100% public taxonomy valid. The last instance failed taxonomy validation, but was successful on the second emission
3 out of 4 had no CL error, but only one succeeded the private taxonomy tests.

29. 5 • COFINREP : technical choices - XBRL learning curve
B. The performance test
Done with over 800 instances.
Instances with every fact combination filed. Not a “real life” scenario.
Difficulty encountered: evaluate the target performance.

30. 5 • COFINREP : technical choices - XBRL learning curve

31. 5 • COFINREP : technical choices - XBRL learning curve
Virtual memory usage (On Java batches)
In a possible future: switching from java 32 bits to java 64 bits (over 4G jvm).

32. 5 • COFINREP : technical choices - XBRL learning curve
Time consuming factors:
Number of facts in the instance
Typed dimensions
Explicit dimension with many domain-members

33. 5 • COFINREP : technical choices - XBRL learning curve
C. Questions to answer before building your IT
Precision and decimals
(9453 decimal= -3 )+ (9454 decimal= -3) + (9453 decimal= -3) = decimal=-3
We imposed decimal=0 for monetary Items and decimal=4 for pures
Need for a tolerated variation in CL, more precise than the use of decimals (needed: )
Units and scale
Although most existing system work with Kilo-Euros in the BDF, money scale is not part of the XBRL.
We work with Euros, but will have to convert when exporting data to other existing application.

34. 5 • COFINREP : technical choices - XBRL learning curve
Missing/duplicate facts
Missing facts can make certain Calculation Links to no be check (especially with total)
Duplicated facts will interfere with calculation links, and possibly any control or restitution framework
This is why, it was decided that missing or duplicate fact were to be detected by COFINREP. The financial agents will be warned of these problems, and will be asked to correct this.
Instance’s size impact
Long item names, namespace ids, unit ids, dimension name….
increase size of instances
Increase processing time of an instance
For example: replacing all ids/names in an instance by numbers => more than 60% size gain

35. 5 • COFINREP : technical choices - XBRL learning curve
Added control framwork
The need of:
inter-instance controls
controls with other data source (data bases, flat file…)
conditional or complex controls
Periodic controls (A test only done a particular month or frequency)
Might require to build some configurable control mechanisms.
Automated restitution: functional/technical barrier on data errors
Not everyone understands fact names, contexts, dimensions and hypercubes.
We need to translate, for example, a Calculation error in way that an accounting personnel will easily understand.

36. 5 • COFINREP : technical choices - XBRL learning curve
XBRL instances and XML mapping tools
The problem encounter with some XML mapping tools and XBRL instances is often due to the declaration of item:
XBRL instance:
Easier mapping format:
Xsl transformation of XBRL instances is in study

37. 5 • COFINREP : technical choices - XBRL learning curve
D. Xades signature and XBRL
First test with Xades signature and XBRL instances were conclusive
Found an incompatibility between XBRL and the c14n, exclusive version, not standard, algorithm. It does not keep silent namespaces.
The final technical note will soon be available on the Banque de France website
In the upcoming weeks, the digital signature will be added to our test platform.

38. 5 • COFINREP : technical choices - XBRL learning curve
E. In a nearby future:
We are trying to extend the use of XBRL in other applications:
communication purpose
data processing purpose
Also we follow the interest that major software companies have in XBRL: Oracle, Microsoft, Altova, Fermat…
Ultimately , we communicate with the profession in hope that they will take the XBRL step, not just the export mapping/converter choice!

39. Secrétariat général de la Commission bancaire
QUESTIONS ?
SGCB