Secrétariat général de la Commission bancaire

COREP - FINREP - XBRLSGCB

COREP - FINREP - XBRLThe French Banking Commission

approach

Sylviane DELARUEHead of IT DepartmentJerome POUPARDIT Expert

Secrétariat général de la Commission bancaire


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COREP- FINREP- XBRLThe French Banking Commission approach

1 • A French European based project

2 • Large and open consequences on IT systems

3 • French taxonomies

4 • The French Banking Commission COREP-FINREP

project : « COFINREP »

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• XBRL taxonomies built by the CEBS for COREP and FINREP will be essential in order to create a common framework, because they include :

– A vocabulary common to 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

• European taxonomies will constitute a common framework, to which elements : can be added extension or from which elements can be inhibeted restriction

1. A French European based project

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• Two european initiatives were taken to this endeavour :

– 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

June 2006: French text transmitted for approval after a common work with the banking industry

COREP

13 January 2006: CEBS publishes COREP templates => http://www.c-ebs.org/standards.htm

28 June 2006 : Banking Commission examines the project of COREP « rules » to be adopted once the final text introducing CRD in the French legal framework will be adopted.

1. A French European based project

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1. Un projet européen décliné au niveau français

– A common « prudential » reporting for banks consolidated accounts in IFRS (FINREP, FINancial REPorting)

European regulation of direct application in France

European reporting published by the CEBS on 16 December 2005 => http://www.c-ebs.org/standards.htm

Discussion with the banking industry on the French reporting during the first half of the year

Adoption of the French rules by the Banking Commission on 28 June

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• 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.

• Therefore we intend to run, in a first stage, 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

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FinancialInstitution

Information System

Prudential and accounting Reporting

Bâle II

IFRS

COREP Instances

FINREP Instances

SIGNECB

Insideapplications

CB/BDFAccreditation

Input Output

Civil statuts data

Configuration

Accreditation

DataControl

andmanagement

Datamining

XBRLTaxonomy management

BAFI

COFINREP

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• The working relation between banks and the BC will change only marginally :

The General Secretary of the Banking Commission will provide the banks with the adapted French version of the european taxonomies

The financial agent will be able to fully use them with them help of « technical guides »

The financial institutions concerned 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

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3. Création des taxonomies françaises

• Study of the European taxonomies validated by the CEBS

• Study of the CB regulations document

• Comparison of the sets of information: between the templates of the European taxonomy and the CB templates (adopted or presented) in order to gather all the differences.

• Some templates and information will be added• Others will be prohibited

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3. Création des taxonomies françaises

• Creation of the French extension on the base of the European taxonomies (for FINREP as well as COREP) that will act like a filter in order to create the French taxonomies

• All the labels of concepts coming from the European taxonomies will be translated into French

• Creation of the French specific concepts (with an English and French label)

• Internal validation of the taxonomies with the help of our tools. (formalism and standards)

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3.Création des taxonomies françaises

• The taxonomy, with the « approved » status, will be accessible on the BANQUE DE France website (under the supervision part: « Reporting XBRL ») for the profession to make a feed back. At the same time a information « push » will be sent to the financial agents’ correspondents

• Gather of the feedbacks (or remarks) – Via mail on our common mail box– Via our web site

• Depending on these responses, we will eventually modify the taxonomy to the point it may need a new full cycle of validation

• The final taxonomy will be on the BDF website with the « Published » status

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• The following documentation will be available as well as the taxonomy:

– Printout of all the concepts used in the French taxonomy.

– Reference note:• For all the European elements (link to the CEBS website)• Links to the French regulations (link to the Banque de France

website)

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• First XBRL reporting :

– COREP and FINREP are to be sent for the 30/06/2007– A four month delay will be accepted as it is the first emission

(see: the annex on delivery dates).

• A test platform will be available to the financial agents on January 2007. They will be able to verify their instances and get a complete report containing any anomalies encountered.

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4 • The Banking Commission project : « COFINREP »

Taxonomy editing tool delivery, getting started

and training

T

A

X

O

N

O

M

Y

First draftEuropean taxonomies 01/2006

Launch

Taxonomy extensions

Final version european Taxonomies & Beginning of French taxonomies09/2006

French taxonomy definitions Validated

taxonomies

Taxonomiesavailable for theprofessional public10/2006

01/2007

Project management and supervision

Taxonomy finalization

Professional’s Feed back

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• COREP:• between 600 and 650 liable entities :• 19 tables that is to say about 14000 data in total with : • 1100 data with a possible postponement• 8300 data asked in standard approach and 6000 in IRBA approach.• • FINREP:• About 80 liable entities• 42 tables (in 27 "documents") that is to say 1895 data.• • About 280 supervisors and inspectors.

• 4 taxonomy managers

• IT team : • supplier : between 5 and 10 persons depending on phases of the projet• internal IT team : between 4 et 6 persons depending on phases of the

project.

Some figures :

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• Choice of a generic software :

– Very short deadlines,

– Use XBRL as far as possible

• Legal process for open tender :

– Research of software solutions : september 05,

– Open tender : the 7th of december 05,

– Emission of specifications by the BC : the 3rd of february 06,

– Choice of solution : may 06

• The chosen software meets 60% of users requierements in the basic version

• The 40% of specific developments are taken in charge by the supplier

• The solution (software and materials) is easy to integrate into the existing production lines at BDF.

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• Scope of the project : :

– French taxonomies management (creation, extension, restriction, update, publication)

– reception management (COREP and FINREP reportings with xbrl format)

– electronic signature of the instance documents

– habilitations and reference data management

– Controls of the receipts

– reminders in case of anomalies or lateness of data

– synthesis and reporting for the needs of the supervisors

– interface with the others systems of BDF

– Automatisation of the processes

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- Taxonomy published

- Intances workflow

- Taxonomy creation

- Instance management InstanceDocument

BACKEND

Taxonomy

Financials institutions (submitters)

Databasesservers

Corporate Directory Server: BAFI …

InstanceDocument

InstanceDocument

InstanceDocument

InstanceDocument

Receipt Management

Reception ManagementTaxonomies

INTRANETEXTRANET

Taxonomy control

TaxonomyMistakes/Errors

Taxonomy management Control and

storageAmounts ctrl.

BAFI/COFINREPComparision

Reporting synthesis

• Conception• Reporting

calculation

ReportingExtraction

COFINREPReportingErrors

Reporting synthesisReference data management

Habilitations

Taxonomy

InstanceDocument

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– The solution integrates the XBRL format into the total production line :

– The XBRL instance documents (sent by the financial institutions) are receipted and then controlled and stored in xbrl format

– The synthesis and calulated reportings are directly built from the xbrl instance documents (via XSLT)

– The outputs (extraction for sending data to IEDOM for example) are possible in XBRL

– This approach allows the IT information system COFINREP to fully use this format benefits ; which are the interoperability and extensibility.

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Delivery modularization :- Unique signature per emitted file- A file may contain, if needed, any amount of XBRL instances (COREP

and/or FINREP)

A simplified instance format;- The instances contain a single CIB (Banque identifier), a single

taxonomy, a single date and a single monetary value.- The different dimension necessary for a template are to be delivered in a

single instance. (For example; COREP’s Template CR and it’s exposure classes)

- For FINREP, in regards of it’s current structure, all data describing a certain date will have to sent in the same instance

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A COFINREP delivery is structured around:- A single XML file- A electronic signature envelop- A element regrouping all the different header element- Header elements containing information necessary for the

identification of the instance, and a single XBRL instance- XBRL instances

The XBRL instances will have to be compliant;- XBRL 2.1- Aggregation 1.0- Dimension 1.0

- French taxonomy

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Electronic signature

Group of header

Header Header Header

XBRL XBRL XBRL

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The XBRL instances will go through the following steps:- Verification of the signature and the habilitations- The received file will be divided in single XBRL instances- Validation of each XBRL instance against the different normes asked by

the Commission Bancaire (XBRL 2.1, French taxonomy…)- Controls with existing data (from BAFI) and with other XBRL instances- Daily batch to check the coherence and progress of delivery sets- A delivery status report including anomalies will be sent to each financial

agent- Data processing to create reports in XBRL. The technology XSLT will be

used for the visual display

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Global conception

Launch

06/2006

Portal V.1

Project management and supervision

Validation

07/2006

Go livePortal V1

Go livePortal V2

P

O

R

T

A

L

Portal V.2

01/200806/2007

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• All the technical components of COFINREP portal are known and used into the existing production lines of BDF : – Server : Windows/Unix – SGBDR : Oracle in environment Unix – Middleware SQL*Net for the standard accès to

Oracle bases– Server WAS (Websphere Application Server)

– The system management is centralized.

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QUESTIONS ?

Documents

Secrétariat général de la Commission bancaire