1October 2006

Basel II - Solvency Ratio IT Implementation

COREPCommon Reporting Initiative by CEBS

Daniel HammKatrin Schmehl

Deutsche Bundesbank

6th European Banking Supervisors XBRL Workshop 04. October 2006

2October 2006

Solvency Ratio (many predefined templates), Flow and structure of banking supervisory information (status quo)

Gateway solution (former used by automatic payment system)

Paper copy „ExtraNet“Internet e-business platform

Data media…cartridge

FD…. FD… <xml...</xml>

FD…

proc

edur

est

ruct

ure

ExtraNet: Internet e-business portal of the Deutsche Bundesbank, FD: File-Description (mainframe-record layout)

+<xml...</xml>

3October 2006

Solvency Ratio (COREP and national templates), Flow and structure of banking supervisory information (preview)

EMW

FD…. FD…

<xml...</xml>

FD…

…to be omitted …to be omitted…to be omitted by 2007

<xbrl...</xbrl>

…to be omitted

Gateway solution (former used by automatic payment system)

proc

edur

est

ruct

ure

Paper copy „ExtraNet“Internet e-business platform

Data media…cartridge

Which format ? The use of XML and XBRL depends on the industry.

We will support both structures.

4October 2006

Solvency Ratio: Using the Online FormCreating an online form of the template

• How to create an online form of a template

XBRL Taxonomy= schema file +linkbase files(stored in database) Intermediate XML XSL Stylesheet HTML result

XBRL CORE

API

• XBRL Core is a Java-based XBRL API • XBRL Core reads the taxonomy, parses the information and creates one intermediate XML file• This puts the parsing logic into Java objects, not into the .xsd stylesheet• Simple stylesheets transforms XML to HTML

5October 2006

Choice of the appropriate template

6October 2006

Default view of a common template

add. information in taxonomy

7October 2006

Additional labels in the taxonomy

8October 2006

Common template with filled values

9October 2006

Quick validation results

Error message: Please insert a number

Affected cell is marked red

10October 2006

Solvency Ratio: Using the Online FormCreating an online form of the template

• How to create an online form of a template

XBRL Taxonomy= schema file +linkbase files(stored in database) Intermediate XML XSL Stylesheet HTML result

XBRL CORE

API

• XBRL Core is a Java-based XBRL API • XBRL Core reads the taxonomy, parses the information and creates one intermediate XML file• This puts the parsing logic into Java objects, not into the .xsd stylesheet• Simple stylesheets transforms XML to HTML

11October 2006

Full schema validation

Please insert a number <= 0

12October 2006

„Full XBRL reporting“ – sample instance document

13October 2006

Different template style – a list

style is defined in taxonomy

14October 2006

Support of typed dimensions I

add a new line

15October 2006

Support of typed dimensions II

new line is added

16October 2006

Support of typed dimensions III

17October 2006

Support of typed dimensions IV

values are sorted automatically

18October 2006

Multiple tables within one template I

choice of different tables

19October 2006

Multiple tables within one template II

3 possible tables

20October 2006

Multiple tables within one template III

21October 2006

Calculation linkbase is used for „beyond-schema“ validation

80000 * 0.08 ≠ 5

22October 2006

Calculation linkbase is used for „beyond-schema“ validation

80000 * 0.08 = 6400

23October 2006

Solvency Ratio,Intranet processing of banking supervisory information (preview)

Current solution:A programme running on an application server reads the incoming XML file based on the XML schema file of the German central bank and maps the reporting data into the database.

In the future:A preceding process will map the incoming XBRL file into the existing XML schema structure.Benefit: almost no changes on the current system.

XBRL

report

XML

report

reads transforms into

maps into

Database

reads

Application Server

Businesslogic

XML

XSLTs

XQuery

Java

24October 2006

XBRL

report

XML

report

transforms into

Solvency Ratio,DEMO of the internal processing

An internal process on the application server recognises XBRL and initiates the transformation process from XBRL instances to the XML format.

Most of the implementation is test based therefore we created graphical user interfaces for test purposes.

reads

maps into

Database

reads

Application Server

Businesslogic

XML

XSLTs

XQuery

Java

26October 2006

Solvency Ratio,DEMO of the internal processing

.class

XBRLMapper

xq

QueryInstanceToXML.xql

xq

FunctionsInstance.xql

xq

FunctionsGeneral.xql

• initiates the XQuery processing

• external variables are given to indicate which taxonomies and instance should be used

Application Server

Businesslogic

XML

XSLTs

XQuery

Java

27October 2006

Solvency Ratio,XQuery example

Unit element of an XBRL instance

XQuery function to get the measure of an element

28October 2006

National taxonomy creation

• The XBRL e-portal won’t be especially used on national COREP templates .

• All templates, which should be reported via XML or XBRL, are translated into XBRL taxonomies.

• The banking supervisors were trained in how to create XBRL taxonomies.

• Beside national COREP templates a lot of other templates are translated into XBRL by using the Fujitsu Editor…

• … and an own implementation of a supporting tool.

• XBRL taxonomies are used in the e-portal of the German Central bank as well as for internal banking supervision purposes.

30October 2006

Solvency RatioTemplate mapping into the data base

0100102001

030030200201002

The German system saves the template definition cell-based into its data base. Each position has a unique cell name.

31October 2006

Solvency Ratio Current template mapping into the data base

Information for each cell:

Template name: ZUSKFCell name: 071Type: monetaryalgebraic sign: positive / negativeUnit: 1000 Text: Combination of dimension and primary text

A text based file per template is created manually that contains information for each cell.

32October 2006

Solvency RatioCurrent template mapping into the data base

upload

A flat file is used to put the template information in the data base.

BAKIS-WOracle

Database

BrowserJavaScript

HTTP

Web Server

HTML

Mapping process from flat file into database tables and cells

33October 2006

Solvency RatioJanuary 2007: Template mapping into the data base

upload

XBRL taxonomies contain all important information to map data into the data base.

BAKIS-WOracle

Database

BrowserJavaScript

HTTP

BusinessLogik

XBRL-Validator

XML

XSLTs

XQuery

Java

Application Server

.xsd

XBRL taxonomies

Flat file creation on basis of the XBRL taxonomies

XQuery mapping

Mapping process from flat file into database tables and cells

35October 2006

Solvency RatioCurrent solution: View on templates for banking supervision purposes

• Banking supervisors can create reports for institutions or groups of institutions.

• The data is presented in the original Pdf template with values of the selected reporting period.

36October 2006

Solvency RatioJanuary 2007: View on templates for banking supervision purposes

• Banking supervisors can create reports for institutions or groups of institutions.

• XBRL taxonomies are used to generate template views in Pdf, HTML and Microsoft Word showing values of the selected reporting period.

37October 2006

xq

QueryInstanceToFormat.xql

xq

FunctionsGeneral.xql

.xsd

XBRL taxonomies

Solvency RatioJanuary 2007: View on templates for banking supervision purposes

xq

FunctionsHTML.xql

xq

FunctionsPDF.xql

XML representation of the data

XQuery combines the information of both formats to create a report.

XML

report

Possible output formats

of XQuery

38October 2006

Solvency RatioJanuary 2007: Advantages of the new system

In the future:• Reduction of the number of paper-based reports.• Support of small institutions to enable an electronic

transmission of data in a cost-effective way.• Substitution of the text-based description of banking-

supervisory templates.• Omit a proprietary definition in Pdf to generate reports.• A template is only described once: in XBRL.• Relatively fast development without big changes in the back-

end.

=> Generic template generator for the Internet and for internal analysis

39October 2006

Basel II Solvency - Important milestones

• April:• Begin of development

• End of July: • Prototype• Publication of a first version of national COREP taxonomies

• October:• End of development• Feature freeze

• November:• Productive deployment• Publication of revised national taxonomies

• February:• Begin of productive use

Number of staff: Software developer: 6, Banking supervisors: 3Iterative development with continuous deployments

Solvency Ratio, IT-Implementation