1. Banque de France Secrétariat général de la Commission bancaire
IX European Banking Supervisors XBRL Workshop
SURFI : Unified FInancial Reporting System
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Paris, October 1st, 2008
Jean-Luc Menda
Deputy Director
Sylviane Delarue
Head of IT department
Commission bancaire
Banque de France
SGCB

2. 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

3. 1. Commission bancaire IT strategy
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

4. 1. Commission bancaire IT strategy
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

5. 1. Commission bancaire IT strategy
MODEC project
SURFI project
COFINREP project
MODEC project
Go live
SURFI project v.1
SURFI project v.2
La directive européenne = référence commune
tendance > séparation des orientations comptables et prudentielles
FINREP conduit par la Belgique
Dans cad III 3thématiques sont abordées : risques de marché, risque de crédit, risque opérationnel, même standardisation au niveau international
l ’ensemble des EC sera impacté
Les superviseurs travaillent sur des normes de calcul et plus de cohérence entre normes comptables et prudentielles,
Conception de 25 tableaux déclinés en 170 combinaisons différentes
Le nombre de docts existant dans BAFI sera multiplié par 2 suite à CAD III
Il sera pris en compte pour 1 établissement du fait qu ’il dispose d ’outils + / - fins pour la prise en compte de sa politique de risque
SURFI Business study
Banking industry consultation
Taxonomies
building
Financial Agents Information System Upgrade
Beginning of 2006
Mid-2007
April 2008
End of 2008
SURFI Taxonomy finalization
June
2010
Dec.
2010

6. 1. Commission bancaire IT strategy
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 ».

7. 1. Commission bancaire IT strategy
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)

8. 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

9. 2. SURFI : Unified Financial Reporting System
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

10. 2. SURFI : Unified Financial Reporting System
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.

11. 2. SURFI : Unified Financial Reporting System
Simplified scope of the project
(Tier 1) French Gaaps
( Tier 2) French Gaaps
(Tier 3) IFRS or French Gaaps
Monetary statistics =France (1)
Prudential data
=France + branches abroad
=social accounts (2)
Consolidated
Prudential data (3)

12. 2. SURFI : Unified Financial Reporting System
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

13. 2. SURFI : Unified Financial Reporting System
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

14. 2. SURFI : Unified Financial Reporting System
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…

15. 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

16. Focus on SURFI – building of the taxonomies
1st stage
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.

17. Focus on SURFI – building of the taxonomies - ex modèle 8080
Après intro
Partie théorique de présentation des données des états (§ 2 à 5) ;
Puis au § 6 on abordera les contrôles et pour la partie des contrôles au sein des états COREP on s’appuiera sur des exemples concrets d’états avec des anomalies ;
Enfin au § 7 analyse de la qualité du portefeuille de crédit : identifier les données susceptibles d’être utilisées pour analyser le profil de risque d’un établissement.

18. Focus on SURFI – building of the taxonomies
2nd stage
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.

19. Focus on SURFI – building of the taxonomies – data logical tree
Après intro
Partie théorique de présentation des données des états (§ 2 à 5) ;
Puis au § 6 on abordera les contrôles et pour la partie des contrôles au sein des états COREP on s’appuiera sur des exemples concrets d’états avec des anomalies ;
Enfin au § 7 analyse de la qualité du portefeuille de crédit : identifier les données susceptibles d’être utilisées pour analyser le profil de risque d’un établissement.

20. Focus on SURFI – building of the taxonomies
2nd stage :
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).

21. Focus on SURFI – building of the taxonomies
3rd stage
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).

22. Focus on SURFI – building of the taxonomies
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)

23. Focus on SURFI – building of the taxonomies – road map
end of September 2008 : templates finalization.
end of November : taxonomy building.
December 2008 : validation.
end of December 2008 : publication of a first draft version.

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

25. Current situation of IT system
BAFI
Financial
Institution
Information
System
Accreditation
Input
Output
Civil statuts data
Configuration
Prudential and accounting Reporting
Inside
applications
CB/BDF
Bâle II
SIGNECB
COREP Instances
Data
Control
and
management
IFRS
Data
mining
FINREP Instances
XBRL
Taxonomy management
Accreditation
COFINREP

26. 49.000 queries/day, i.e. 2 per second, 550 night batch prosesses,
Legacy system : BAFI
BAFI in few figures :
840 end-users (510 in headquarters departments, 330 in the subsidiaries)
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.
563 incidents entre décembre 2004 et mai 2006 du nombre d’abend référencés par le centre sur BAFI. Soit une moyenne de 31 incidents par mois.
transactions entre décembre 2004 et mai Soit une moyenne de transactions par mois. Soit pour un mois moyen de 20 jours : par jour. Soit 1,7 transactions par seconde (sur une journée de 8 heures).
transactions IMS sur les 22 jours de travail entre le 3 mai 2006 et le 1er juin 2006 (les 8 mai et jeudi de l’Ascension compris) sans compter ces deux jours exceptionnels. (sur 6 heures de travail on est à deux transactions par seconde, sur 7 heures à 1,7, et sur 8 heures à 1,5).

27. Source : SIGD -Banque de France - février 2005
Legacy system : BAFI
Civil status data
910 credit institutions (banks and financial firms)
156 investment firms
Accounting data
lines directly available
455 tables
687 screens or reports
430 processing batches
563 incidents entre décembre 2004 et mai 2006 du nombre d’abend référencés par le centre sur BAFI. Soit une moyenne de 31 incidents par mois.
transactions entre décembre 2004 et mai Soit une moyenne de transactions par mois. Soit pour un mois moyen de 20 jours : par jour. Soit 1,7 transactions par seconde (sur une journée de 8 heures).
transactions IMS sur les 22 jours de travail entre le 3 mai 2006 et le 1er juin 2006 (les 8 mai et jeudi de l’Ascension compris) sans compter ces deux jours exceptionnels. (sur 6 heures de travail on est à deux transactions par seconde, sur 7 heures à 1,7, et sur 8 heures à 1,5).
Source : SIGD -Banque de France - février 2005

28. 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 ;

29. Focus on SURFI - IT part of the project
Business Controls & storage
Reception
File gathering
Signature management
Acknoledgement of receipt
Feedback +
Specific
messages
Structure Controls
Taxonomies
Reference system
Files system
Taxonomies
management
Repository exploration
Business controls
synthesis
Exporting, interfaces, calculation
Taxonomy controls & anomalies management
validated
data
Design, Versioning &Validation
Specific controls, validation rules
Storage,
DOD-SDESS

30. 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.

31. Scope of the project : main functionnalities
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

32. Scope of the project : main functionnalities
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
With XBRL tools or with others tools (BO, SAS) : the choice hasn’t been made

33. 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

34. Main orientations
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 .
Comité de pilotage SURFI
09/09/2008

35. Main orientations
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)
Comité de pilotage SURFI
09/09/2008

36. Banque de France Secrétariat général de la Commission bancaire
Thank you for your attention !