6th European Banking Supervisors XBRL Workshop 04. October 2006 Basel II - Solvency Ratio IT Implementation COREP Common Reporting Initiative by CEBS Daniel Hamm Katrin Schmehl Deutsche Bundesbank 6th European Banking Supervisors XBRL Workshop 04. October 2006

Solvency Ratio (many predefined templates), Flow and structure of banking supervisory information (status quo) Gateway solution (former used by automatic payment system) Paper copy „ExtraNet“ Internet e-business platform Data media …cartridge procedure structure FD…. FD… <xml... </xml> FD… <xml... </xml> + ExtraNet: Internet e-business portal of the Deutsche Bundesbank, FD: File-Description (mainframe-record layout)

Solvency Ratio (COREP and national templates), Flow and structure of banking supervisory information (preview) Gateway solution (former used by automatic payment system) Paper copy „ExtraNet“ Internet e-business platform Data media …cartridge EMW procedure …to be omitted …to be omitted by 2007 …to be omitted …to be omitted <xml... </xml> structure FD…. FD… FD… <xbrl... </xbrl> Which format ? The use of XML and XBRL depends on the industry. We will support both structures.

Solvency Ratio: Using the Online Form Creating an online form of the template How to create an online form of a template XBRL Core is a Java-based XBRL API XBRL Core reads the taxonomy, parses the information and creates one intermediate XML file This puts the parsing logic into Java objects, not into the .xsd stylesheet Simple stylesheets transforms XML to HTML XBRL CORE API XBRL Taxonomy = schema file +linkbase files (stored in database) Intermediate XML XSL Stylesheet HTML result

Choice of the appropriate template

Default view of a common template add. information in taxonomy

Additional labels in the taxonomy

Common template with filled values

Quick validation results Affected cell is marked red Error message: Please insert a number

Solvency Ratio: Using the Online Form Creating an online form of the template How to create an online form of a template XBRL Core is a Java-based XBRL API XBRL Core reads the taxonomy, parses the information and creates one intermediate XML file This puts the parsing logic into Java objects, not into the .xsd stylesheet Simple stylesheets transforms XML to HTML XBRL CORE API XBRL Taxonomy = schema file +linkbase files (stored in database) Intermediate XML XSL Stylesheet HTML result

Full schema validation Please insert a number <= 0

„Full XBRL reporting“ – sample instance document

Different template style – a list style is defined in taxonomy

Support of typed dimensions I add a new line

Support of typed dimensions II new line is added

Support of typed dimensions III

Support of typed dimensions IV values are sorted automatically

Multiple tables within one template I choice of different tables

Multiple tables within one template II 3 possible tables

Multiple tables within one template III

Calculation linkbase is used for „beyond-schema“ validation 80000 * 0.08 ≠ 5

Calculation linkbase is used for „beyond-schema“ validation 80000 * 0.08 = 6400

Solvency Ratio, Intranet processing of banking supervisory information (preview) Current solution: A programme running on an application server reads the incoming XML file based on the XML schema file of the German central bank and maps the reporting data into the database. In the future: A preceding process will map the incoming XBRL file into the existing XML schema structure. Benefit: almost no changes on the current system. Application Server Business logic XML XSLTs XQuery Java XBRL report reads transforms into Database maps into XML report reads

Solvency Ratio, DEMO of the internal processing An internal process on the application server recognises XBRL and initiates the transformation process from XBRL instances to the XML format. Most of the implementation is test based therefore we created graphical user interfaces for test purposes. Application Server Business logic XML XSLTs XQuery Java XBRL report reads transforms into Database XML report maps into reads

Solvency Ratio, DEMO of the internal processing

Solvency Ratio, DEMO of the internal processing initiates the XQuery processing .class XBRLMapper xq QueryInstance ToXML.xql Application Server Business logic XML XSLTs XQuery Java external variables are given to indicate which taxonomies and instance should be used xq Functions General.xql xq Functions Instance.xql

Solvency Ratio, XQuery example Unit element of an XBRL instance XQuery function to get the measure of an element

National taxonomy creation The XBRL e-portal won’t be especially used on national COREP templates . All templates, which should be reported via XML or XBRL, are translated into XBRL taxonomies. The banking supervisors were trained in how to create XBRL taxonomies. Beside national COREP templates a lot of other templates are translated into XBRL by using the Fujitsu Editor… … and an own implementation of a supporting tool. XBRL taxonomies are used in the e-portal of the German Central bank as well as for internal banking supervision purposes.

Solvency Ratio, DEMO of test tool for the taxonomy creation here: the national COREP OPR template is presented XQuery is used to create an HTML representation of a national taxonomy

Solvency Ratio Template mapping into the data base The German system saves the template definition cell-based into its data base. Each position has a unique cell name. 01001 01002 02001 02002 03003

Solvency Ratio Current template mapping into the data base A text based file per template is created manually that contains information for each cell. Information for each cell: Template name: ZUSKF Cell name: 071 Type: monetary algebraic sign: positive / negative Unit: 1000 Text: Combination of dimension and primary text

Solvency Ratio Current template mapping into the data base A flat file is used to put the template information in the data base. Browser JavaScript upload HTTP Web Server HTML BAKIS-W Oracle Database Mapping process from flat file into database tables and cells

Solvency Ratio January 2007: Template mapping into the data base XBRL taxonomies contain all important information to map data into the data base. upload Browser JavaScript HTTP .xsd Business Logik XBRL- Validator XML XSLTs XQuery Java Application Server XQuery mapping XBRL taxonomies BAKIS-W Oracle Database Flat file creation on basis of the XBRL taxonomies Mapping process from flat file into database tables and cells

Solvency Ratio January 2007: Flat file creation on basis of XBRL taxonomies

Solvency Ratio Current solution: View on templates for banking supervision purposes Banking supervisors can create reports for institutions or groups of institutions. The data is presented in the original Pdf template with values of the selected reporting period.

Solvency Ratio January 2007: View on templates for banking supervision purposes Banking supervisors can create reports for institutions or groups of institutions. XBRL taxonomies are used to generate template views in Pdf, HTML and Microsoft Word showing values of the selected reporting period.

Possible output formats of XQuery Solvency Ratio January 2007: View on templates for banking supervision purposes XML report xq QueryInstance ToFormat.xql XML representation of the data xq Functions General.xql xq Functions HTML.xql xq Functions PDF.xql .xsd Possible output formats of XQuery XQuery combines the information of both formats to create a report. XBRL taxonomies

Reduction of the number of paper-based reports. Solvency Ratio January 2007: Advantages of the new system In the future: Reduction of the number of paper-based reports. Support of small institutions to enable an electronic transmission of data in a cost-effective way. Substitution of the text-based description of banking-supervisory templates. Omit a proprietary definition in Pdf to generate reports. A template is only described once: in XBRL. Relatively fast development without big changes in the back-end. => Generic template generator for the Internet and for internal analysis

Solvency Ratio, IT-Implementation Basel II Solvency - Important milestones April: Begin of development End of July: Prototype Publication of a first version of national COREP taxonomies October: End of development Feature freeze November: Productive deployment Publication of revised national taxonomies February: Begin of productive use Number of staff: Software developer: 6, Banking supervisors: 3 Iterative development with continuous deployments