Building an XBRL Basel II solution in Europe

1. Building an XBRL Basel II solution in Europe The COREP XBRL project

2. AGENDA • Business case • European Basel II framework • COREP concept • Superset of reports • Data Matrix • COREP project • Architecture • Test cases • Project team

3. Risk Management IS Supervisory Operations Counterparties Collateral … Reports Other data … … Business case: XBRL use on COREP Supervisor Bank Bank operations, controls…. Presentation, Analysis… Report ------------------------------ Reception Aggregator XBRL instance

4. Business case - Definition • COREP: • defining a COmmon REPorting framework around the solvency ratio for credit institutions and investment firms under the European Union Capital Requirements. • (Based on Basel II, Pillar I) • Committee of European Banking Supervisors www.c-ebs.org

5. Business case - requirements • Flexibility: each supervisor is allowed to choose the scope as well as the level of aggregation of information required; the framework will allow for flexibility also to accommodate for differences in the exercise of the national options foreseen in the Capital Requirements, for instance with reference to the treatment of small institutions; • Consistency: the same concepts and terminology have been used as far as possible; • Standardisation: the number of different templates has been minimised.

6. Report 25 ---------------------------------------------------------------------------------------------------------------------------------------------------------------- Business case – European framework Basel II European Law 9X,XX% Basel II compatible Directives 2000/12 & 93/6 Transposition into national Legislation Country 1 Country 2 Country 3 Country 25 National Regulation FSA 1 FSA 2 FSA 3 FSA 25 National Implementation Report 1 ------------------------------------ Report 2 Report 3 ---------------------------------------------------------------------------------------------------------------------------------------------------------------- XBRL challenge!

7. COREP concept: extension COREP superset of reports Large report Custom report Medium report Small report

8. COREP concept: template Template: Dimension 2 Dimension 1 Measure Measure Measure Measure Dimension 3 Dimension 4

9. EXPOSURE TYPES EXPOSURE CLASSES STANDARD APPROACH CAPITAL REQUIREMENTS COREP concept: Data Matrix All the dimensions are optional!

10. COREP project: goals • Deliverables • Initial COREP XBRL taxonomy • Set of non-confidential test cases • Basic collaborative environment

11. COREP Project: forecast by January 21st

12. COREP project: Architecture • Initial XML/XBRL taxonomy based in COREP • Technological challenge • 17 Dimensions • Exposure type, Exposure classes, Risk weights… • 24 Measure sets • Exposure value, Capital requirements, … • 26 Templates (Dimensions x Measures) • IRB Capital requirements, IRB Capital requirements… • Taxonomy description at www.corep.info • Simplest solution for the easiest implementation • Key XBRL “gurus” are participating in COREP

13. COREP project: Test cases Set of non-confidential test cases: • Anonymous: No reputation risk • Public: to be used everywhere • Early involvement of banks & users • Hands-on experience in COREP • Quality control of XBRL taxonomies • As simple as fulfilling a spreadsheet but… • With the intrinsic complexity of Basel II

14. COREP project: Test cases flow Anonymous Information Anonymous Information COREP-XBRL Group test@corep.info P R O J E C T M A N A G E M E N T 2 Doc File e-mail 1 3 Doc, Pdf,… Files Excel File Mapper COLLABORATING INSTITUTION Anonymous upload Excel File COLLABORATING INSTITUTION COLLABORATING INSTITUTION XBRL printout XBRL Instance 4 COLLABORATING INSTITUTIONS SUPERVISORS XBRL COMMUNITY OTHERS www.corep.info 5 Public Repository Non compliant test cases Anonymous Comments

16. COREP project: Request for testing • Common framework for the reporting of the solvency ratio (COREP) by credit institutions • To test the COREP XBRL project, institutions are invited to participate by providing test data on a best effort basis. Please visit www.corep.info for details.  • Who can participate? Any institution that has access to data of banking activities, like for example, credit institutions, consultant firms or any other party interested in participating. • How to participate? Institutions should provide test cases using this spreadsheet (www.corep.info/documents/coreptest.zip) and attaching all the relevant documentation associated. No XBRL knowledge is necessary! • Collaborating institutions will acquire through their participation in this process: • A deeper and better understanding on the COREP reporting framework for the solvency ratio. • A chance to provide comments on how the proposed framework works. This may help institutions to provide comments on the CEBS consultation paper. • An early knowledge about the availability in their systems of the information that will be required in the future for solvency reporting. • The collaboration in this open process will also allow the Institutions to benefit from the experiences, comments, suggestions and questions posed by other members of the banking industry, market participants and XBRL experts. • Questions? e-mail to test@corep.info

17. COREP project team • Basic collaborative environment • Multinational project team • 50 participants from 12 countries on kick-off workshop • Different skills • Supervisor – business • Supervisor – IT experts • XBRL practitioners • Banks, consultants & providers • University • Extensive use of Internet tools • Website www.corep.info • E-mail list & repository on Yahoo Group • Conference call

18. Acknowledgments

19. Test cases are more than welcome. • Fell free to join the COREP Club! • Thanks for your attention.