surfi : future french banking supervision with xbrl sgcb ix european banking supervisors xbrl...

SURFI : Future French Banking Supervision with XBRL SGCB

IX European Banking Supervisors XBRL Workshop

SURFI : Unified FInancial Reporting System

Paris, October 1st, 2008

Jean-Luc MendaDeputy Director

Sylviane DelarueHead of IT department

Commission bancaireBanque de France

Banque de FranceSecrétariat général de la Commission bancaire

SGCB

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Presentation overview

1. Commission bancaire IT strategy

2. Focus on SURFI

- strategic and functional aspects

- building of the taxonomies

- the present “BAFI” system

- SURFI IT project

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Main IT strategy elements :

– Implement the new COREP and FINREP reports in compliance with the European harmonized framework

– Follow the CEBS recommendation to adopt XBRL in order to foster harmonization

– Change our reporting framework, promote harmonization and streamlining, launch the SURFI project

– Modernize our banks rating system and IT studies system

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In this framework, progressive, but complete change of our reporting system…

…in 3 stages:

• COFINREP project implementing COREP et FINREP specifications: beginning of 2006 – mid 2008;

• MODEC project modernizing the civil status data gathering: June 2007 – 1st semester 2010;

• SURFI project modernizing and streamlining regulatory data gathering: April 2008 – June 2010

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Beginning of 2006

MODEC project

Mid-2007

MODEC project

Go live

June 2010

End of 2008SURFI Taxonomy

finalization

SURFI project v.1

Financial Agents Information System Upgrade

SURFI project

April 2008

SURFI Business studyBanking industry consultation

COFINREP project

Dec. 2010

SURFI project v.2

Taxonomies building

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COFINREP project

• It permitted the implementation of the Basel II and IFRS impacts on the regulatory reports…

• … following the CEBS recommandations about the use of the XBRL

standard for harmonized European COREP et FINREP reports. • Launched in 1993, the present BAFI system, using a proprietary data

format, couldn’t be upgraded to reach the new specifications.

• A finished project :

– New functionalities since September, dedicated to the supervision staff (e.g. specific reports);

– Next improvment : the implementation of the « tolerance margin ».

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MODEC project

• Offering to the banking industry a state-of-the-art interactive software dedicated to civil status processes ;

• Being able to get live data transmission from banks and give them feedback ;

• Taking into account the new European regulatory requirements :

– integrate new categories of banks, in compliance with european directives, – and reinforce the disclosure (the directive on « Systems of payment » requires the creation of an on-line registered bank database »

• Allowing the 80 IT systems of BoF to have an easy real-time acces to this system of reference (WEB site, WEB services, WEBSPHERE, ORACLE)

• End of the project : 1st semester 2010 (this system of reference is necessary for SURFI)

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2. SURFI : Unified Financial Reporting System

Present data collection system, BAFI

– Reporting entities : MFIs – according to the French banking law, id. broad definition -, and investment firms

– Coverage : data for statistical as well as prudential purposes, but BoP data partially out of the scope

– Same database, but limited harmonization of concepts and reporting formats, generating double collection of data

– On the technical side, database system based on a proprietary system developed in 1993, therefore somewhat mature

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Modernizing the reporting system

– Result of a discussion process with the banking industry following the introduction of COREP and FINREP

– The industry requested :

• a significant reduction of the reporting burden

• the elimination of double collection of data for supervisory and statistical purposes

• a better coordination in the definition of new reporting requirements between Banque de France departments

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Launched in June 2007, the main objectives of the project

– Harmonize data collection for supervisory and statistical purposes, in eliminating double collection of data

– Alleviate the reporting burden through the streamlining of the entire present reporting system

– Take fully into account the ECB statistical revision package and articulate our own schedule

– Switch from a template centered approach to a data centrix approach, capitalizing on our XBRL experience for COREP and FINREP.

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Simplified scope of the project

(Tier 1) French Gaaps

( Tier 2) French Gaaps

(Tier 3) IFRS or French GaapsMonetary statistics =France (1)

ConsolidatedPrudential data (3)

Prudential data=France + branches abroad

=social accounts (2)

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Main results in terms of harmonization

– Broad harmonization between tier 1 and tier 2 data, relying on the same accounting standards (French Gaaps) ;

– Limited between tiers 1 and 2 on the one side, and consolidated data established either on IFRS or French Gaaps, depending on the institution

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Potential links between counterpart breakdowns

– Find bridges between the different reporting schemes (ESA95, FINREP and COREP)

– Make it easier for MFIs to manage counterparty breakdowns

– Build a table allowing to bridge ESA95 counterpart sectors with SURFI counterparts, as well as COREP and FINREP

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Other achievements of the project

– Elimination of double collection of data : every data will be sent once either for statistical or prudential purpose

– A significant reduction in the volume of data

– A more risk-based oriented system consisting of core information sent by every institution, complemented by information sent depending on the level of activity in different areas (thresholds for interbank operations, financial instruments, credit…)

– Ready to start building the taxonomy…

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Presentation overview

• Strategical axis in terms of operational IT objectives.

• IS Modernization in 3 stages

• Focus on SURFI

- strategic and functional aspects

- building of the taxonomies

- The present “BAFI” system

- SURFI IT project

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Focus on SURFI – building of the taxonomies

Design of the SURFI future templates revised by three working groups : almost finalized.

the presentation rules have been determined regarding the format and the header, use of a specific colour code to identify dimension names and their values, facts, forbidden data, presentation labels. the elements and dimensions codification will be implemented at the same time.

Templates validation by Monetary departments, banking commission, ultramarine departments : in progress.

1st stage

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Focus on SURFI – building of the taxonomies - ex modèle 8080

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implementation of the working-out principles of the SURFI taxonomy : building of «primary taxonomies and dimensions».

The « primary taxonomies» elements come from : elements from the « accounting class data tree » other elements resulting from the templates

each element has its own concept name, label, hierarchical links with other elements, regulatory references and, if necessary, calculation links.

2nd stage

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Focus on SURFI – building of the taxonomies – data logical tree

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the XBRL element name will be determined from the element labels belonging to the data tree or the templates.

the normalisation of the template presentation and the data tree elements will make easier the automatic initialization of most of the future taxonomies via a purpose-built tool.

SURFI templates naming rules are under validation.

The templates will be grouped by activity blocks (associated to a threshold or a theme).

2nd stage :

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the « dimensions taxonomies », their values and their hierarchical order are being elaborated.

for each template : design of the hypercubes.

choice of a a modularized model of taxonomy architecture (FINREP 1.3).

3rd stage

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• Some figures about SURFI Taxonomy :

– 64 templates (some of them with sub templates)– 900 elements from the data logical tree– 900 elements outside the data logical tree– 15 dimensions (until 6 depth levels)

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Focus on SURFI – building of the taxonomies – road map

end of September 2008 : templates finalization.

end of November 2008 : taxonomy building.

December 2008 : validation.

end of December 2008 : publication of a first draft

version.

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Internal checkings design,ECB requirements to integrate,New regulations writing (BC and BoF),Recovery and/or re using of the BAFI data

Remaining tasks…

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Current situation of IT system

FinancialInstitution

Information System

Prudential and accounting Reporting

Bâle II

IFRS

COREP Instances

FINREP Instances

SIGNECB

Insideapplications

CB/BDFAccreditation

Input Output

Civil statuts data

Configuration

Accreditation

DataControl

andmanagement

Datamining

XBRLTaxonomy management

BAFI

COFINREP

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BAFI in few figures :

840 end-users (510 in headquarters departments, 330 in the subsidiaries)49.000 queries/day, i.e. 2 per second,550 night batch prosesses,800 day batch processes,100 file transfers (input ou output) per day,31 incidents per month,1.400 programs.

Legacy system : BAFI

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• Civil status data– 910 credit institutions (banks and financial firms)– 156 investment firms

• Accounting data – 23 000 000 lines directly available– 455 tables– 687 screens or reports– 430 processing batches

Source : SIGD -Banque de France - février 2005

Legacy system : BAFI

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Focus on SURFI - IT part of the project

IT project milestones :

• Launch of the project : beginning of June 2008 ;• Requirements document created during the summer in order to

launch rapidly an open tender ;• Opening of the tests platform for the external actors in january

2010• Opening of the 1st version of the SURFI portal in July 2010• Opening of the 2nd version of the SURFI portal in December

2010 ;

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Focus on SURFI - IT part of the project

Taxonomiesmanagement

Files system

Repository exploration

•Business controls

•synthesis

•Exporting, interfaces, calculation

•Design, Versioning&Validation

•Taxonomies•Reference

system

Business Controls & storage

Feedback +

Specific messages

•Taxonomy controls & anomalies management

•Structure Controls

•Specific controls, validation rules

•Storage,

Reception

•File gathering

•Signature management

•Acknoledgement of receipt

validated

data

DOD-SDESS

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Scope of the project : main functionnalities

– Reporting duties defining and remittance monitoring :

• Who, what and when

• Mistakes or late data sending

• Exceptions management

• Main issue

– Only one taxonomy but

– different rules and periods of remittances

– Different activity blocks of facts expected varying by threshold or a theme.

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– 1st and 2nd level controls :

• Structure & format, arithmetic & accountancy controls.

• Main controls : identifier, taxonomies, inter-taxonomies et inter-dates, tolerance margins, duplicate and missing facts.

• Main issues

– Formulae specifications aren’t ready yet

– Tools haven’t been validated either

– Specific controls will be inevitable

– From partial instances and aggregated instances

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– Storage :

• In files system or in data base system : the choice hasn’t been made

• Main issue

– Performance

– design, calculation and visualization of simple and complex reportings and synthesis

– Main issue

– With XBRL tools or with others tools (BO, SAS) : the choice hasn’t been made

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Scope of the project : others functionnalities

– All the functions of an « up-to-date » IT system• Static data management• Taxonomies management

– Main issue : lack of versionning specifications• Habilitation management• Easy navigation in the IT software• Exporting to other systems

– In XBRL– In flat files– To EXCEL spreadsheets

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SURFI : Future French Banking Supervision with XBRL SGCBComité de pilotage SURFI 09/09/2008

Collecting partial data in order to take into account the different remittance periods. This possibility will imply aggregating internally the final and unique instance for a date and for a financial institution.

Use of external taxonomies (e.g. COREP Host) possible

Small credit firms will be able to type their data into specific internet pages (instead of sending an XBRL file)

The retrieval of COFINREP data must be done .

Main orientations

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SURFI : Future French Banking Supervision with XBRL SGCBComité de pilotage SURFI 09/09/2008

All the technical components of chosen solution have to be known and used into the existing or planned production lines of BOF.

The total compatibility with XBRL 2.1. and dimensions 1.0 specifications is compusory.The road map concerning Formulae, versionning and rendering is requiered.

The data management solution (file system versus data base system) will have to be optimized and met the BoF requierements, especially in terms of complex reporting)

Preference for an XBRL software package (instead of programming a new one)

Main orientations

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Banque de FranceSecrétariat général de la Commission bancaire

Thank you for your attention !

surfi : future french banking supervision with xbrl sgcb ix european banking supervisors xbrl...

Documents

surfi project modernizing

project slide

surfi strategic

xbrl sgcb

strategy cofinrep project

commission bancaire

finished project

present bafi system