Sharing experiences of XBRL projects COREP/FINREP in France

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Sharing experiences of XBRL projects
COREP/FINREP in France
VI European Banking Supervisors XBRL Workshop,
4th 5th October 2006, Madrid
Sylvie LEPICIER XBRL France
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Agenda

• XBRL France
• COREP FINREP in France
• Use Cases
• Issues and Solutions

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XBRL France Members in 2006 (27 members)

• IT companies,Software providers, experts
• Atos Origin Integration
• Cartesis
• CEGID
• Microsoft France
• SopraGroup
• Software AG
• UBMatrix
• Invoke
• III - Umanis
• LGB Finance
• Viveo
• Fujitsu
• C. Marion

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XBRL France Legal Structure

• Not for profit organisation
• With Board and Steering Commitee
• Phillippe Bonnin - President
• Bruno Tesnière Vice President
• Sylvie Lepicier Treasurer
• Jean-Luc Menda Member of the Board
• Gilles Maguet Secretary General

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XBRL France Working Groups

• Taxonomy Working group
• French financial statements Taxonomy Working
  Group with the aim to set up a taxonomy according
  to French Gaap in coordination with Edificas
  organisation
• IFRS Taxonomy Working Group Translation of the
  IFRS Taxonomy
• COREP/FINREP Working Group geared by Banking
  Commission in France
• Marcom Croup (events, marketing materials,
  breakfasts, newsletter, etc.)
• Technology Group in support to the other groups

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XBRL France Translation of the IFRS Taxonomy
(1/2)

• 1st step To Carry out the translation of 4000
  elements names of the 2005 IFRS GP Taxonomy
• Process a translation group has been set up
  between XBRL Belgium, NBB (National bank of
  Belgium), XBRL France, Banque de France, CNC
  (Conseil national de la Comptabilité France)
  and IASB in July 2006
• An intern appointed by XBRL France is in charge
  of this specific task
• The cross-checking is under process between CNC
  and NBB

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XBRL France Translation of the IFRS Taxonomy
(2/2)

• To help the checking, all the labels are
  classified by accounting class (Balance sheet
  classified, BS liquidity, BS portfolio, Income
  statement by function, by nature,...)
• The FINREP translation is also taken into account
• A release in draft wil be probably available for
  mid october
• The final release should be ready for
  mid-november
• Next step the translation and checking of the
  2006 IFRS GP Taxonomy

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Agenda

• XBRL France
• COREP FINREP in France
• Use Cases
• Issues and Solutions

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Banking Regulatory Reporting in France? Before
June 2007 Existing system
SITU.CB .AAØØ1Ø3B5A..000000100000
Banque de France (SGCB)
Corporate accounts
BAFI FR GAAP
MonthlyQuarterly Annually
IFRS
BAFI FR GAAP BAFI IFRS
Consolidated accounts
SGCB Secrétariat général de la Commission
Bancaire
BAFI Base des Agents Financiers, existing
reporting system
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Regulatory Reporting in France? After June 2007
COREP FINREP
Banque de France (SGCB)
COREPSGCB
BAFI FR GAAP
(Quarterly)Semi-annually Annually
IFRS
BAFI FR GAAP BAFI IFRS
COREPFINREP SGCB
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Regulatory Reporting in France? COREP FINREP
Regulatory Requirement
June2006
Oct.2007
January 2006
June2007
Deadline for transmission
PublicationFINREP COREP (last project) FRANCE
1st reportingin Paris
PublicationFINREP COREP CEBS
(reduced)
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Agenda

• XBRL France
• COREP FINREP in France
• Use Cases
• Issues and Solutions

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Use case 1?French bank with international and
european subsidiaries
Project Management
Pérennization Maintenance
Dictionnary
Macro-Analysis
Mapping
Gap treatment
Sensibilisation Workshops
?
?
?
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Use case 1? The main questions at each step

• Lexical / Dictionnary
• Questions how to summarize all the regulations
  on COREP and FINREP and how to give a correct
  meaning for the understanding of each party
  within the bank
• French CB instruction (COREP in november and
  FINREP in June)
• CRD directives
• Basel 2 texts
• IRFS rules
• Questions/answers from French Banking Federation
  (FBF) and Banking Commission
• Local bank financial rules referential

DICTIONNARY
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Use case 1? The main questions at each step

• Mapping
• Once precisely defined the exact meaning of
  elements, find the way of mapping the data
• Direct mapping the data already exist in the
  accounting system or risk systems
• The data dont exist gap analyses and treatment
• Examples
• the breakdown by counterparty
• Risk cells for FINREP
• New breakdown (ex 2 years for risk liquidity
  instead of 1, 3 and 5 years as before)

Gap treatment
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Use case 1?The questions regarding the IT
architecture for FINREP and COREP reporting
Accounting and consolidation system
Risk Management Data
Credit risk
Subsidiaries
Xls.xbrl files
?
Risk Management Data
?
Market risk
FINREP COREP
Counterparties breakdown Prudential templates
?
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Use case 1?The questions regarding the IT
architecture for FINREP and COREP reporting

• What is the best organisation to produce COREP
  and FINREP reportings ?
• Head of Finance and Heaf of Risk separately or
  the financial department, traditionnally in
  charge og the reporting tasks ?
• Which systems to use ?
• Legacy systems already operationnal for
  consolidation and risk management, both of them
  or a special XBRL tool ?
• Reporting systems already operationnal or a new
  XBRL system as a convertor/validator ?
• Which are the controls to enforce for
• Reconciliation of risk data and accounting data
• Treatment of gap (COREP and FINREP data required
  and data available in both systems)

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Use case 1?The  state of art  regarding the IT
architecture for FINREP and COREP reporting

• Most of the time, the financial department is in
  charge of reporting as before
• The data reconciliation between risk and
  acounting is viewed like as an important
  parameter in the project
• The choice of the XBRL tools (XBRL module of
  existing systems or new provider for
  convertor/validator) is still pending at this
  step

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Use Case 2? French bank specialised in consumer
credit
Susidiaries XBRL tools
Outsourcing providers
Accounting and consolidation systems
Master data base
Business compliance
subsidiaries
Technology compliance
XBRL Tools (viewer,)
Commission bancaire
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Use Case 2? French bank specialised in consumer
credit

• The main issues identified are
• How to collect data from
• subsidiaries (which own their proprietray legacy
  IT system)
• partners (the bank has outsourced most of the
  back office management tasks)
• How to deal with subsidiaries In / outside
  Europe (COREP/FINREP and non COREP/FINREP)
• How to extent the XBRL tools through the whole
  bank

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Agenda

• XBRL France
• COREP FINREP in France
• Use Cases
• Transversal Issues

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The main planning for COREP and FINREP reporting
en France
COREP Quaterly if total of assets sup 80
milliards euros If not semi-annually
FINREP Semi-annual
June Octobre 2007 December Avril 2008
4 months
3 months
June septembre 2008 December Mars 2008
3 months
2 months
NB As of June about 15 statements have to be
sent As of december about 27 statements
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Due to the reduction of remittance delay, speed
up of data collection and processing are required

• Stream B Closing process consistency Fast
  Close
• Speed up of data collection and processing
• New tasks to be handled
• Risk-accounting data reconciliation process and
  tool implementation
• Co-validation of RWAs
• Control of Regulatory reporting
• Collection and assembling of Credit, Market and
  Operational RWA new ratio calculation
• Stream B Closing process consistency Fast
  Close
• Speed up of data collection and processing
• New tasks to be handled
• Risk-accounting data reconciliation process and
  tool implementation
• Co-validation of RWAs
• Control of Regulatory reporting
• Collection and assembling of Credit, Market and
  Operational RWA new ratio calculation

• New tasks to be handled
• Risk-accounting data reconciliation process and
  tool implementation
• Co-validation of RWAs
• Control of Regulatory reporting
• Collection and assembling of Credit, Market and
  Operational RWA new ratio calculation

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Dates to keep in mind at the Europeanlevel?
Which agenda should be respected ?
Belgique Head-office
First date (Finrep 2006, Corep 2008) Remittance
delay 40 days
Example
France subsidiary
First date (june 2007)/ frequency
semi-annually, remittance delay (down to 2 months)
AUSTRIA subsidiary
First date / frequency quaterly, remittance
delay (1 month),
First date / frequency quaterly, remittance
delay (down to 8 days ?), cells asked all
TCHEQUIE subsidiary
Basel II local options / calculation rules
(counterparty types ,)
?
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Thank youMuchas gracias

• sylvie.lepicier_at_xbrl.fr
• XBRL France
• 153, Rue de Courcelles
• 75017 Paris
• 33.6.87.89.71.91