Transcript Applying XBRL: U.S. Bank Regulators’ Call Report Modernization Project OMG Conference

Applying XBRL:
U.S. Bank Regulators’ Call
Report Modernization Project
OMG Conference
Phil Walenga, Assistant Director, FDIC
November 18, 2002
XBRL International Regulatory Chair
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. 2
Time
Rekey
consuming
Data and &
Analyze
not comparable
Publish
Stale
60+
information
Day Old Data
Correct
Imprecise
Errors
Data
Via
Phone
1) Update
Report
Inflexible
Schedules
Few Formats
Cycle of
Inefficiency
Read,
Manually
Inconsistent
Interpret
Update
Manual
Data
Laborious and error
Entry
Edit
prone
After
Submission
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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
• 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
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XBRL Components/Terminology
XBRL-Specification
XBRL-Taxonomy
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
Schema and
Linkbases
XBRL- Instance
Linkbases: using xlink – labels, definitions,
presentation, references, calculations,
formulas and versions control
‘Output’ result of tagging data using one or
more taxonomies
1 or more taxonomies =
Framework
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Specification
Specifications, Taxonomies,
Pilots and Implementations
XBRL V2
XBRL V1
Frameworks
Germany
PFS
FDIC
POC
APRA
V1 Live
2001
UK C&I
PFS
US Fin. Rpt.
Framework
Japan
PFS
Pilots
Taxonomies
Implementations
Version
Formulas
IAS
IAS
Intl Fin Rpt Disclosures
US C&I PFS
2000
XBRL V2.1
NASDAQ
Pilot
UK
Taxes
Call
Reports
Credit Risk
Assessment
Bank &
Savings
US C&I
Call Report
Pilot
APRA
V2 Live
Inland Rev
Live
2002
2003
Call Report
Live
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2004
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
Instructions
Report Forms
MDRM
Dictionary
Demographic
XBRL
Call Report
Framework
Test and
Intraseries Edit
Data
Edits
Report
Vendors
Meta
Data
Internet
Repository
Banks
Business Rules
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XBRL Validation Only- Time Savings
2 Weeks
Less
0
10
20
30
40
50
Domestic Banks
60
70
80
Current
Proposed
Banks with Foreign
Current
Proposed
Bank w/o Foreign
Bank w/Foreign
Validation
Distribution
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XBRL Call Report Framework
Federal Reserve System
Micro Data Reference Manual (MDRM)
Validation
Criteria
Report
Instructions
Customer Information
031/041
Forms
Call Report
Instance
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US Bank Regulatory Reporting
Framework
Federal Reserve System
Micro Data Reference Manual (MDRM)
Customer Information
Series of Reporting Forms
(Document)
Instance
Call Report
Document
Bank
Instance
Holding
Document
Company
Instance
Summary
Document
of
Deposits
Branch
Instance
Application
Document
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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
Document
and Entity
Global Common
Document
FRTF
General Concepts
FRTF
Primary
Terms
Bank & Savings
Institutions
U.S. Bank
Regulatory
Reporting
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
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Extraordinary Items
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 Director
Federal Deposit Insurance Corporation
[email protected] 202-736-0569
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