Applying XBRL:Applying XBRL:U.S. Bank Regulators’ Call U.S. Bank Regulators’ Call

Report Modernization ProjectReport Modernization Project

Phil Walenga, Assistant Director, FDICPhil Walenga, Assistant Director, FDIC

XBRL International Regulatory ChairXBRL International Regulatory Chair

OMG ConferenceOMG Conference

November 18, 2002November 18, 2002

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Background

• Bank regulators – FDIC, FRB, OCC – preparing to use XBRL

• Use XBRL to collect, validate and distribute quarterly bank Call Reports

• FDIC member of XBRL and heavily involved in its usage

• Research, testing, initial development of XBRL nearing completion

The views and opinions expressed in this presentation are those of the speaker and do not necessarily represent the position of the FDIC.

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1) UpdateReport

SchedulesFew Formats

Read,ManuallyInterpretUpdate

ManualDataEntry

Edit After

Submission

CorrectErrors

ViaPhone

Publish60+

Day Old Data

Imprecise

Data

Inconsistent

InflexibleRekey Data and Analyze

Time consuming & not comparable

Stale

information

Laborious and error prone

Cycle ofInefficiency

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Why is XBRL Important to FDIC?

• XBRL improves how we collect, process and distribute financial information– Think data, not rigid, inflexible forms

• Dynamic financial environment needs XBRL-like capabilities to:– Adapt faster to changing business conditions– Collect and distribute data more timely,

accurately and comparably– Reduce data collection and usage burden

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• XBRL International, Inc. supports and manages the XBRL Standard– eXtensible Business Reporting Language– www.xbrl.org – 170 plus worldwide members

• Royalty free, open, international standard to exchange financial information– Exclusive standard for this purpose

• FDIC joined January 2001– U.S. and Intl’ Steering Committee member

XBRL

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XBRL Components/Terminology

XBRL-TaxonomyXBRL-Taxonomy

XBRL- InstanceXBRL- Instance

XBRL-SpecificationXBRL-Specification

Schema andLinkbases

Schema andLinkbases

Schema: dictionary of terms

Linkbases: using xlink – labels, definitions, presentation, references, calculations, formulas and versions control

Framework1 or more taxonomies =

Rules to governs creation of XBRL compliant files and conformance to the specification

A collection of financial facts for a certain period of time for a reporting entity. By report purpose, industry and jurisdiction.

‘Output’ result of tagging data using one or more taxonomies

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Pilo

ts

NASDAQPilot

US C&I

Specifications, Taxonomies, Pilots and Implementations

2001 2002 20032000

APRAV1 Live

Inland RevLive

XBRL V2XBRL V1

Call ReportLive

FormulasVersion

UK C&I PFS

XBRL V2.1

UKTaxes

IASIntl Fin Rpt

IASDisclosu

res

US C&I PFS

US Fin. Rpt.

Framework

JapanPFS

GermanyPFS

2004

Call ReportPilot

Bank &

SavingsT

axo

no

mie

s Fra

mew

ork

s

Imp

lem

enta

tio

ns

FDICPOC

Sp

ecif

icat

ion

APRAV2 Live

Credit RiskAssessment

CallReport

s

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Call Report Project

• Modernize the collection, processing, validation and distribution of financial data

• Quarterly Consolidated Report of Condition and Income (Call Reports)– Submitted by 8,000 + banks– 22 schedules, 2,000 plus data elements, 1,700

reasonableness edits– Instructions 394 pages in PDF file

• Relied upon for supervision, bank closings, deposit insurance assessments, bank and industry monitoring.

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XBRL Call Report Development

• Completing analysis of report requirements

• FDIC, with contractor support, building XBRL taxonomies Call Report forms, instructions, validation criteria, and FRB MDRM terms dictionary for March ‘01 and March ‘02– Complete year end 2002– Release March 2002 Call Report draft taxonomies to

WWW.FDIC.GOV

• FDIC, with contractor support, creating tool for Call Report Analysts to create and maintain Call Report taxonomies– Complete year end 2002

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Future: Regulatory Report Supply Chain

Internet Internet

XBRLCall ReportFramework

ReportVendors

Banks

MetaData

Repository

Instructions

Report Forms

Edits

Test and

Intraseries Edit

Data

MDRMDictionary

Demographic

Business Rules

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XBRL Validation Only- Time Savings

0 10 20 30 40 50 60 70 80

Domestic Banks

Banks with Foreign

Bank w/o Foreign Bank w/Foreign Validation Distribution

2 Weeks Less

Current

Current

Proposed

Proposed

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XBRL Call Report Framework

Call ReportInstance

Federal Reserve SystemMicro Data Reference Manual (MDRM)

Customer Information

ReportInstructions

ValidationCriteria

031/041Forms

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US Bank Regulatory Reporting Framework

Instance Document

Instance Document

Instance Document

Instance Document

Series of Reporting Forms(Document)

Call ReportBank

Holding Company

Summary of Deposits

Branch Application

Federal Reserve SystemMicro Data Reference Manual (MDRM)

Customer Information

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Bank and Savings Industry (BASI)

• BASI Framework under development

• Use by bankers for internal reporting

• E&Y, KPMG LLP, PwC, FDIC, FRB, and others are participating

• Analyzed a number bank SEC filings

• Converting now to XBRL format

• Expect draft release by year end

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Call Report BASI

BASI equivalent items electronically mapped to Call Report and automatically filled

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US Financial Reporting Taxonomy Framework, BASI, and US Bank Regulatory Framework

Global Common Document

FRTFGeneral Concepts

FRTFPrimary Terms

Bank & SavingsInstitutions

U.S. Bank Regulatory Reporting

Framework

General ConceptsAssetsLiabilitiesEquity Owner Contributions Owner Distributions Comprehensive IncomeIncomeExpenses

Primary TermsCashHeld to Maturity SecuritiesTrading SecuritiesTrade SecretsGoodwillOther AssetsMinority InterestEquityCommon StockNet IncomeExtraordinary Items

Document and Entity

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Impacts – Near Term

• Earlier access to Call Report data for banks, regulators, analysts and public

• More accurate data

• More timely changes to report requirements

• More comparable data for external analysts

• Reuse data – banks and regulators

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Impacts – Mid to Long Term

• Banks automate processing of regulatory reports, begin to use “Off the Shelf” data

• Develop specialized edits and reports by bank type or rating

• Rely more upon on offsite monitoring• Analysts cover more banks or today’s amount

better• Become data centric vs. form centric• Integration of reports and holistic view of the

frequency of reports

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Questions?

Philip Walenga, Assistant DirectorFederal Deposit Insurance Corporation

pwalenga@fdic.gov 202-736-0569

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