XBRL Applying the eXtensible Business Reporting Language
XBRL Symposium, September 23, 2002Phil Walenga, Assistant Director, DIRXBRL International Regulatory Chair
Key PointsWe have a concrete business purpose for using XBRLWe have consensus and commitment within our agency and our regulatory partners to make this workWe are working collaboratively to design a solution to aid an audience broader that just the FDIC, or federal bank regulatorsWe have other components in place: standards, specifications and momentumThe views and opinions expressed in this presentation are those of the speaker and do not necessarily represent the position of the FDIC.
Briefing HighlightsWhy Is XBRL Important?Regulatory Reporting Issues Call Report Modernization Using XBRLBank Regulatory Reporting FrameworkBank and Savings Industry FrameworkTimelinesImpacts
Why is XBRL Important?XBRL improves how we collect, process and distribute financial informationThink data, not rigid, inflexible formsDynamic financial environment needs XBRL-like capabilities to:Adapt faster to changing business conditionsCollect and distribute data more timely, accurately and comparablyReduce data collection and usage burden
Reporting IssuesAdaptability - introducing new requirements is cumbersome Inconsistency interpretation of requirements may vary across reporting software Report Preparation - can be a laborious, manual process for some institutionsData Precision - needs improvementTimeliness - current process is lengthyUser Needs - integrating data & requirements labor intensive for external analysts
FDIC Vision Real Time DataFDIC Chairman Donald E. Powell outlined a vision for the FDIC:.. including a new program to offer real-time bank Call Report data..
FFIEC Target - Call ReportsModernize the collection, processing, validation and distribution of financial dataQuarterly Consolidated Report of Condition and Income (Call Reports)Submitted by 8,000 + banks22 schedules, 2,000 plus data elements, 1,500 validation criteriaInstructions 394 pages in PDF fileRelied upon for supervision, bank closings, deposit insurance assessments, bank and industry monitoring.
Potential BeneficiariesFDIC - A federal government agency established in 1933 to maintain stability and public confidence in the US financial systemInsures $3.1 trillion in depositsSupervises 5,600 banksCustodian for the financial reporting of 8,000+ banksManages receiverships for any failed US insured bank or thrift
Potential Beneficiaries (contd)The Federal Reserve Board (FRB)The Office of the Comptroller of the Currency (OCC)Banks/Trade AssociationsSoftware Vendors that provide specialized supportBusiness AnalystsConsumer
ObjectivesReporting Transparency for regulators, investors & depositorsAccuracy, currency and comparabilityAdaptability to respond to changing business environment and emerging risksEvent driven reportsEfficiencies and Savings in Call Reporting and related processesReduce manual labor for agencies and banksIntegrate regulatory reports
Work AccomplishedFDIC, FRB, and OCC initial analysis of Call Report data requirementsFDIC developed draft Call Report taxonomiesFDIC developed proof of concept demonstrationFDIC, FRB, and OCC deployed common set of 1,500 Call Report validation criteria to Call Report SW vendors and banks in MS Excel format
XBRL Call Report DevelopmentCompleting analysis of report requirementsInstructions, validation criteria and report forms
FDIC building XBRL taxonomies Call Report forms, instructions, validation criteria, terms dictionary, business rules for March 01 to Dec. 02Complete year end 2002Release March 2002 Call Report taxonomies in October publish to WWW.FDIC.GOV
FDIC creating tool for Call Report Analysts to create and maintain Call Report taxonomiesComplete year end 2002
Business Analyst Tool This is the reporting formAll Call Report analysts manage Call Report taxonomiesNot need to be XBRL developerArt work of the form no longer importantUnder construction
Business Analyst Tool Replaces MS Word, Adobe PDF and MS Excel filesIntegrates forms, instructions and validation criteria
XBRL Components/TerminologyXBRL-TaxonomyXBRL- InstanceXSL - Style SheetXBRL-SpecificationSchema andLinkbasesSchema: dictionary of termsLinkbases: set of links to manage references, labels and relationships 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 taxonomiesPresentation or transformation of tagged data
XBRL Call Report FrameworkReportInstructionsCall ReportInstanceValidationCriteriaBusinessRules031/041Forms
US Bank Regulatory Reporting FrameworkInstance DocumentInstance DocumentInstance DocumentInstance DocumentSeries of Reporting Forms(Document)Call ReportBank Holding CompanySummary of DepositsBranch Application
Bank and Savings Industry (BASI)BASI Framework under developmentUse by bankers for internal reportingE&Y, KPMG LLP, PwC, D&T, FDIC, FRB, and others are participatingAnalyzed a number bank SEC filingsDeveloped Excel worksheets including balance sheet, income statement, cash flow and notesConverting now to XBRL formatExpect draft release by year end
Call ReportBASIBASI equivalent items electronically mapped to Call Report and automatically filled
North American XBRL GAAP Framework, BASI and US Bank Regulatory FrameworkGlobal Common DocumentNAFR General ConceptsNAFRPrimary TermsBank & SavingsInstitutionsU.S. Bank Regulatory Framework
Taxonomies, Implementations200120022003FFIECCall ReportUS GAAPFramework2004U.S. Bank & SavingsTaxonomiesImplementationsAustralianRegulatorVersion 2Call ReportAustralianRegulatorVersion 1
Impacts Near TermEarlier access to Call Report data for banks, regulators, analysts and publicMore accurate dataMore timely changes to report requirementsMore comparable data for external analystsReuse data banks and regulators
Impacts Mid to Long TermBanks automate processing of regulatory reportsDevelop specialized edits and reports by bank type or ratingRely more upon on offsite monitoringAnalysts cover more banks or todays amount betterBecome data centric vs. form centricPossible integration of reports and holistic view of the frequency of reports
Questions?Philip Walenga, Assistant Director, DIRFederal Deposit Insurance Corporationpwalenga@fdic.gov 202-736-0569
(PASSION for the subject, EXCITIEMENT, FOCUS, Speak LOUD, Change of Pace and Tone, 10 second rule, silent pause, serving God and others.)Thank you for the opportunity to talk to you about what the FDIC, FRB and OCC are planning and preparing to do with XBRL
Today I am going to describe what FDIC expects to accomplish with XBRL, what we have completed in the two years we have invested, and what we see on the horizon.
In the almost 30 years I have worked for FDIC I have been fortunate to be involved in a number of core technologies from the initial use of PCs, to LANs, WANS, client server database and the Internet.
I more excited about the potential for change that XBRL brings us than I have about any emerging technology in a long time.
Key points of this presentation include,
This is not a solution in search of a problem. The first application is widely used within the industry, and it can be even more useful with XBRL.
FDIC, FRB and OCC have made significant commitment in time and resources to make this work and we are in agreement for its use.
We are collaborating and participating with a wide audience of stakeholders that affects not just the regulators. Bankers, Wall Street Analysts, software vendors and consumers.
COMPONENTS:Standards include accounting standards, electronic dictionaries already in place, and reporting standards.
The XBRL specification is in second release and FDIC is playing a significant role in advancing its rules.
Momentum: The FDIC, FRB and OCC have been working on the business application to be discussed today for over two years and the FDIC has been an active member of XBRL for almost two years.
Regulatory reporting processes have problems in each step from developing the reports to integrating the results that XBRL can help resolve.
FDICs Chairman Don Powell has provided FDIC with an aggressive target when he stated earlier this year that he wanted real time Call Report data.
Transition: Call Reports is the first application targeted to use XBRL.Call Reports is the first application for XBRL where we believe it will meet a concrete business need
FDIC heavily relies upon Call Reports for:
Other stakeholders including the FRB, OCC, banks and Wall Street analysts use it.
We are working toward modernizing the whole process
Call Report is a:
As one of the beneficiaries, FDIC has taken the lead in preparing and planning to use XBRL
The FDIC, (next slide)FRB and OCC are all direct beneficiaries and collaborating to make it happen.
Consumers benefit because we will have better information to manage risks of the banking industry.As a result of our collaborative efforts, we have accomplished to date the following:
Proof of concept used as a basis to get consensus and commitment to use XBRL for Call Report processing.
The validation criteria was in MS Word early this year, which made it very difficult to use by programmers. MS Excel is