European Banking Supervision: COREP and FINREP Taxonomies Roadmap
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Transcript of European Banking Supervision: COREP and FINREP Taxonomies Roadmap
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European Banking Supervision: COREP and FINREP Taxonomies Roadmap
Ignacio Boixo , CEBSKatrin Schmehl, Deutsche Bundesbank
24th June 2009
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Collaborative Tasks in Collaborative Tasks in DetailDetail
Business Experts Track
Identification of the measuresIdentification of common elements
Business Experts Track
Identification of the measuresIdentification of common elements Taxonomy Development Track
Normalisation of the templates
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
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
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European Financial European Financial StabilityStabilityhttp://ec.europa.eu/internal_market/finances/docs/committees/supervision/communication_may2009/C-2009_715_en.pdf
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European financial European financial supervisionsupervision
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Collect micro-prudential Collect micro-prudential informationinformation• 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
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European Supervisory European Supervisory Authorities 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 2010.The information may be forwarded in aggregated and/or anonymous format to the ESRC.
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European System of Financial European System of Financial SupervisorsSupervisorsThree European Supervisory Authorities1. European Banking Authority (EBA)2. European Insurance and Occupational
Pensions Authority (EIOPA)3. European Securities Authority (ESA)
Appropriate national supervisory authorities
Cross-sectoral cooperation, in addressing cross-sectoral challenges, including financial conglomerates
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European Council agreed on June European Council agreed on June 1818
Run is already started!
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Collaborative Tasks in Collaborative Tasks in DetailDetail
Business Experts Track
Definition of validation rulesPreparation of meaningful test cases
Business Experts Track
Definition of validation rulesPreparation of meaningful test cases Taxonomy Development Track
Creation of schema matrixes
Taxonomy Development Track
Creation of schema matrixes
Business Experts Track /Taxonomy Development Track
Quality insurance by peer-2-peer reviewand business review
Business Experts Track /Taxonomy Development Track
Quality insurance by peer-2-peer reviewand business review
Taxonomy Development Track
Definition of design principles for the FINREP taxonomy
Taxonomy Development Track
Definition of design principles for the FINREP taxonomy
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Collaborative Tasks in Collaborative Tasks in DetailDetail
Taxonomy Development Track
Creation of a draft FINREP taxonomy
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
Reverse engineering into schema matrix by an application and alignment check
with agreed schema matrix
Taxonomy Development Track
Public review period
Taxonomy Development Track
Public review period
Taxonomy Development Track
Preparation of test cases
Taxonomy Development Track
Preparation of test cases
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Further TasksFurther TasksTaxonomy Development Track
Definition of design principles on formulas
Taxonomy Development Track
Definition of design principles on formulas
Taxonomy Development Track
Creation of the European formula linkbase
Taxonomy Development Track
Creation of the European formula linkbase
Taxonomy Development Track
Creation of documentation on taxonomy architecture
Taxonomy Development Track
Creation of documentation on taxonomy architecture
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Identification of the measures and dimensions
Business Experts Track
Identification of the measuresIdentification of common elements
Business Experts Track
Identification of the measuresIdentification of common elements
measures
measures
dimension
dimension
comm
on elements
comm
on elements
Makes FINREP understandable for IT purposes !Makes FINREP understandable for IT purposes !
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Normalisation of the templates
Taxonomy Development Track
Normalisation of the templates
Taxonomy Development Track
Normalisation of the templates
dimension
dimension
dimension
dimension
measuresmeasures
No impact on changes in the presentation !No impact on changes in the presentation !
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Identification of IFRS elements
Business Experts Track /Taxonomy Development Track
Identification of IFRS elements relevant for FINREP
Business Experts Track /Taxonomy Development Track
Identification of IFRS elements relevant for FINREP
FINREPFINREP IFRSIFRS
The amount of fitting elements could be relatively small.
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Creation of schema matrixesTaxonomy Development Track
Creation of schema matrixes
Taxonomy Development Track
Creation of schema matrixes
EXCEL viewEXCEL view XBRL viewXBRL view
What the supervisors ask for! What is being defined by IT!
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Creation of schema matrixesTaxonomy Development Track
Creation of schema matrixes
Taxonomy Development Track
Creation of schema matrixes
EXCEL viewEXCEL view XBRL viewXBRL view
Schema matrix viewSchema matrix view
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Design principlesTaxonomy Development Track
Definition of design principles for the FINREP taxonomy
Taxonomy Development Track
Definition of design principles for the FINREP taxonomyOne schema for the primaries
One schema per dimension
..dimension
.XSD
commonprimaries
.XSD
template.XSD
imports
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Design principlesTaxonomy Development Track
Definition of design principles for the FINREP taxonomy
Taxonomy Development Track
Definition of design principles for the FINREP taxonomyComprehensive 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.
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Design principlesTaxonomy Development Track
Definition of design principles for the FINREP taxonomy
Taxonomy Development Track
Definition of design principles for the FINREP taxonomyComprehensive Error Messages
When the element name is not comprehensive,
why not using a codification?
p-sd:ConversionFactorAppliedp-sd:ConversionFactorApplied
p-sd:p122365p-sd:p122365
Advantages:
+ Easier to read by technical staff+ Size of the instance is considerably smaller+ More stability
Advantages:
+ Easier to read by technical staff+ Size of the instance is considerably smaller+ More stability
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Design principlesTaxonomy Development Track
Definition of design principles for the FINREP taxonomy
Taxonomy Development Track
Definition of design principles for the FINREP taxonomyComprehensive Error Messages
<p-sd:p122365>150.00</p-sd:p122365><p-sd:p122365>150.00</p-sd:p122365>
Solution:
+ Usage of formula linkbase+ Assignment of an error description+ Definition of error description in national languages
Solution:
+ Usage of formula linkbase+ Assignment of an error description+ Definition of error description in national languages
ConversionFactorAppliedConversionFactorApplied
Possible validation result:
The value of should be
smaller than 100.00 but the reported value is .
ConversionFactorAppliedConversionFactorApplied
150.00150.00
Taxonomy:Instance:
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Design principlesTaxonomy Development Track
Definition of design principles for the FINREP taxonomy
Taxonomy Development Track
Definition of design principles for the FINREP taxonomyHow to modularise the European taxonomy
Defined by using the Definition
LinkbaseDefined by using the Definition
LinkbaseXBRL dimensional error messages aren’t comprehensive.XBRL dimensional error messages aren’t comprehensive.
Possible validation result:
The following check is not valid:
“p122365 | s1 | c1” : ConversionFactorAppliedConversionFactorApplied Scope of ConsolidationScope of Consolidation CRDCRD
Defined by using the Formula Linkbase
Defined by using the Formula Linkbase
||
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Design principlesTaxonomy Development Track
Definition of design principles for the FINREP taxonomy
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
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
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Test cases and examplesTaxonomy Development Track
Preparation of test cases
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
+ Creation of XBRL formulas on basis of Excel formulas defined in the spreadsheets
+ Creation of sample test cases based on the provided numbers
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Modularisation
How changes were adapted to the national needs?
Largereport
Largereport
Medium report
Medium report
SmallreportSmallreport
Customreport
FINREP superset of reports
FINREP superset of reports
Expected:Expected:
Customreport
Realised:Realised:
Medium report
Medium report
SmallreportSmallreport
Customreport
Customreport
Current situation !Current situation !
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Modularisation
How changes will be adapted to the national needs?
Situation in the future!Situation in the future!
Definition
LinkbaseDefinition
Linkbase
Formula LinkbaseFormula LinkbaseCEBS
taxonomy
.XSD
CEBStaxonom
y.XSD
Label Linkbase(s)Label Linkbase(s)
Presentation
LinkbasePresentation
Linkbase
European Approach
Definition
LinkbaseDefinition
Linkbase
Formula LinkbaseFormula LinkbaseCEBS
taxonomy
.XSD
CEBStaxonom
y.XSD
Label Linkbase(s)Label Linkbase(s)
Presentation
LinkbasePresentation
Linkbase
National Approach
Nationaltaxonom
y.XSD
Nationaltaxonom
y.XSD
Formula LinkbaseFormula Linkbase
Label Linkbase(s)Label Linkbase(s)
Presentation
LinkbasePresentation
Linkbase
No changes on concepts !
Only additional linkbases !
No changes on concepts !
Only additional linkbases !
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Best Practices
+ Harmonisation efforts on basis of the XBRL instances+ Harmonisation efforts on basis of the XBRL instances
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Deliverables
What is going to be provided?
Definition
LinkbaseDefinition
Linkbase
Formula LinkbaseFormula LinkbaseCEBS
taxonomy
.XSD
CEBStaxonom
y.XSD
Label Linkbase(s)Label Linkbase(s)
Presentation
LinkbasePresentation
Linkbase
European Approach
Schema matrixes
Headertaxonom
y.XSD
Headertaxonom
y.XSD
Label
LinkbaseLabel
LinkbaseTest cases
Taxonomy ArchitectureDocumentation
FormulaDocumentation
+
+
+