XBRLXBRL Applying the eXtensible Applying the eXtensible

Business Reporting LanguageBusiness Reporting Language

XBRL Symposium, September 23, 2002XBRL Symposium, September 23, 2002

Phil Walenga, Assistant Director, DIRPhil Walenga, Assistant Director, DIR

XBRL International Regulatory ChairXBRL International Regulatory Chair

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Key Points

• We have a concrete business purpose for using XBRL

• We have consensus and commitment within our agency and our regulatory partners to make this work

• We are working collaboratively to design a solution to aid an audience broader that just the FDIC, or federal bank regulators

• We have other components in place: standards, specifications and momentum

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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Briefing Highlights

• Why Is XBRL Important?

• Regulatory Reporting Issues

• Call Report Modernization Using XBRL

• Bank Regulatory Reporting Framework

• Bank and Savings Industry Framework

• Timelines

• Impacts

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Why is XBRL Important?

• 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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Reporting Issues

• Adaptability - introducing new requirements is cumbersome

• Inconsistency – interpretation of requirements may vary across reporting software

• Report Preparation - can be a laborious, manual process for some institutions

• Data Precision - needs improvement• Timeliness - current process is lengthy• User Needs - integrating data & requirements

labor intensive for external analysts

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FDIC Vision – “Real Time” Data

• FDIC Chairman Donald E. Powell outlined a vision for the FDIC:

.. “including a new program to offer real-time bank Call Report data..”

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FFIEC Target - Call Reports

• 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, 1,500

validation criteria– Instructions 394 pages in PDF file

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

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Potential Beneficiaries

• FDIC - A federal government agency established in 1933 to maintain stability and public confidence in the US financial system– Insures $3.1 trillion in deposits– Supervises 5,600 banks– Custodian for the financial reporting of

8,000+ banks– Manages receiverships for any failed US

insured bank or thrift

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Potential Beneficiaries (cont’d)

• The Federal Reserve Board (FRB)

• The Office of the Comptroller of the Currency (OCC)

• Banks/Trade Associations

• Software Vendors that provide specialized support

• Business Analysts

• Consumer

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Objectives

• Reporting Transparency for regulators, investors & depositors– Accuracy, currency and comparability

• Adaptability to respond to changing business environment and emerging risks– Event driven reports

• Efficiencies and Savings in Call Reporting and related processes– Reduce manual labor for agencies and banks– Integrate regulatory reports

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Work Accomplished

• FDIC, FRB, and OCC initial analysis of Call Report data requirements

• FDIC developed draft Call Report taxonomies

• FDIC developed proof of concept demonstration

• FDIC, FRB, and OCC deployed common set of 1,500 Call Report validation criteria to Call Report SW vendors and banks in MS Excel format

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XBRL Call Report Development

• Completing analysis of report requirements– Instructions, validation criteria and report forms

• FDIC building XBRL taxonomies Call Report forms, instructions, validation criteria, terms dictionary, business rules for March ‘01 to Dec. ‘02– Complete year end 2002– Release 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 taxonomies– Complete year end 2002

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• Business Analyst Tool – This is “the reporting form”– All Call Report analysts manage Call

Report taxonomies– Not need to be XBRL developer– Art work of the form no longer

important

Under construction

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• Business Analyst Tool – Replaces MS Word, Adobe PDF and MS Excel

files– Integrates forms, instructions and validation

criteria

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XBRL Components/Terminology

XBRL-TaxonomyXBRL-Taxonomy

XBRL- InstanceXBRL- Instance

XSL - Style SheetXSL - Style Sheet

XBRL-SpecificationXBRL-Specification

Schema andLinkbases

Schema andLinkbases

Schema: dictionary of terms

Linkbases: 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 taxonomies

Presentation or transformation of tagged data

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XBRL Call Report Framework

ReportInstructions

Call ReportInstance

ValidationCriteria

BusinessRules

031/041Forms

Federal Reserve SystemMicro Data Reference Manual

(MDRM)

Customer Information

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US Bank Regulatory Reporting Framework

Instance Document

Instance Document

Instance Document

Instance Document

Series of Reporting Forms(Document)

Call Report

Bank 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, D&T, FDIC,

FRB, and others are participating• Analyzed a number bank SEC filings• Developed Excel worksheets

including balance sheet, income statement, cash flow and notes

• 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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North American XBRL GAAP Framework, BASI and US Bank Regulatory Framework

Global Common Document

NAFR General Concepts

NAFRPrimary Terms

Bank & SavingsInstitutions

U.S. Bank Regulatory 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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Common ComponentsGlobal

CommonDocument

NorthAmerican General

Concepts

NorthAmerican Primary

TermsBank andSavings

Institutions

Bank RegulatoryReporting

Framework

Bank Call

Reports

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Taxonomies, Implementations

2001 2002 2003

FFIECCall

Report

US GAAPFramework

2004

U.S. Bank & Savings

Taxonomies

Implementations

AustralianRegulatorVersion 2

Call Report

AustralianRegulatorVersion 1

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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

• 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• Possible integration of reports and holistic

view of the frequency of reports

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Questions?

Philip Walenga, Assistant Director, DIRFederal Deposit Insurance Corporation

pwalenga@fdic.gov 202-736-0569