Transcript XBRL FDIC
XBRL Applying the eXtensible Business Reporting Language XBRL Symposium, September 23, 2002 Phil Walenga, Assistant Director, DIR XBRL International Regulatory Chair 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.2 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 3 Why is XBRL Important? • XBRL improves how we collect, process and distribute financial information – Think data, not rigid, inflexible forms • Dynamic financial environment needs XBRLlike capabilities to: – Adapt faster to changing business conditions – Collect and distribute data more timely, accurately and comparably – Reduce data collection and usage burden 4 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 5 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..” 6 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. 7 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 8 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 9 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 10 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 11 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 12 Under construction • 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 13 • Business Analyst Tool – Replaces MS Word, Adobe PDF and MS Excel files – Integrates forms, instructions and validation 14 criteria XBRL Components/Terminology XBRL-Specification XBRL-Taxonomy Schema and Linkbases XBRL- Instance 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. Schema: dictionary of terms Linkbases: set of links to manage references, labels and relationships ‘Output’ result of tagging data using one or more taxonomies XSL - Style Sheet Presentation or transformation of tagged data 1 or more taxonomies = Framework XBRL Call Report Framework Federal Reserve System Micro Data Reference Manual (MDRM) Validation Criteria Report Instructions Customer Information Business Rules 031/041 Forms Call Report Instance 16 US Bank Regulatory Reporting Framework Federal Reserve System Micro Data Reference Manual (MDRM) Customer Information Series of Reporting Forms (Document) Instance Call Document Report Bank Instance Holding Document Company Summary Instance of Document Deposits Branch Instance Application Document 17 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 18 Call Report BASI BASI equivalent items electronically mapped to Call Report and automatically filled 19 North American XBRL GAAP Framework, BASI and US Bank Regulatory Framework Document and Entity Global Common Document NAFR General Concepts NAFR Primary Terms Bank & Savings Institutions U.S. Bank Regulatory Framework General Concepts Assets Liabilities Equity Owner Contributions Owner Distributions Comprehensive Income Income Expenses Primary Terms Cash Held to Maturity Securities Trading Securities Trade Secrets Goodwill Other Assets Minority Interest Equity Common Stock Net Income 20 Extraordinary Items Common Components Bank Call Reports Bank Regulatory Reporting Framework Global Common Document North American General Concepts North American Primary Terms Bank and Savings Institutions 21 Taxonomies, Implementations Taxonomies US GAAP Framework U.S. Bank & Savings Call Report Implementations Australian Regulator Version 1 Australian Regulator Version 2 2001 2002 FFIEC Call Report 2003 2004 22 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 23 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 24 Questions? Philip Walenga, Assistant Director, DIR Federal Deposit Insurance Corporation [email protected] 202-736-0569 25