Applying XBRL: U.S. Bank Regulators’ Call Report Modernization Project Phil Walenga, Assistant Director, FDIC XBRL International Regulatory Chair OMG Conference November 18, 2002

2 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.

3 1) Update Report Schedules Few Formats Read, Manually Interpret Update Manual Data Entry Edit After Submission Correct Errors Via Phone Publish 60+ Day Old Data Imprecise Data Inconsistent Inflexible Rekey Data and Analyze Time consuming & not comparable Stale information Laborious and error prone Cycle of Inefficiency

4 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

5 XBRL International, Inc. supports and manages the XBRL Standard –eXtensible Business Reporting Language – –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 XBRL

6 XBRL Components/Terminology XBRL-Taxonomy XBRL- Instance XBRL-Specification Schema and Linkbases Schema and Linkbases Schema: dictionary of terms Linkbases: using xlink – labels, definitions, presentation, references, calculations, formulas and versions control Framework 1 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

7 Pilots NASDAQ Pilot US C&I Specifications, Taxonomies, Pilots and Implementations APRA V1 Live Inland Rev Live XBRL V2 XBRL V1 Call Report Live FormulasVersion UK C&I PFS XBRL V2.1 UK Taxes IAS Intl Fin Rpt IAS Disclosures US C&I PFS US Fin. Rpt. Framework Japan PFS Germany PFS 2004 Call Report Pilot Bank & Savings TaxonomiesFrameworks Implementations FDIC POC Specification APRA V2 Live Credit Risk Assessment Call Reports

8 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.

9 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 FDIC, with contractor support, creating tool for Call Report Analysts to create and maintain Call Report taxonomies –Complete year end 2002

10 Future: Regulatory Report Supply Chain Internet XBRL Call Report Framework Report Vendors Banks Meta Data Repository Instructions Report Forms Edits Test and Intraseries Edit Data MDRM Dictionary Demographic Business Rules

11 XBRL Validation Only- Time Savings 2 Weeks Less Current Proposed

12 XBRL Call Report Framework Call Report Instance Federal Reserve System Micro Data Reference Manual (MDRM) Customer Information Report Instructions Validation Criteria 031/041 Forms

13 US Bank Regulatory Reporting Framework Instance Document Series of Reporting Forms (Document) Call Report Bank Holding Company Summary of Deposits Branch Application Federal Reserve System Micro Data Reference Manual (MDRM) Customer Information

14 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

15 Call ReportBASI BASI equivalent items electronically mapped to Call Report and automatically filled

16 US Financial Reporting Taxonomy Framework, BASI, and US Bank Regulatory Framework 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 Extraordinary Items Document and Entity

17 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

18 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

19 Questions ? Philip Walenga, Assistant Director Federal Deposit Insurance Corporation

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