xbrl as a tool for supervision arnoud vossen chairman cebs expert group on financial information

21
XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Upload: rebecca-walker

Post on 23-Dec-2015

219 views

Category:

Documents


1 download

TRANSCRIPT

Page 1: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

XBRL as a tool for supervision

Arnoud Vossen

Chairman CEBS Expert Group on Financial Information

Page 2: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 2

Outline

•What is CEBS?

•Plusses of XBRL for supervision

•Use of XBRL in the EU supervisory authorities

•Priorities to a more harmonised EU reporting framework

Page 3: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 3

What is CEBS?

The Committee of European Banking Supervisors is a consultative body comprised of high level representatives from the banking supervisory authorities and central banks of the European Union (other EEA countries may participate as observers)

Page 4: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 4

CEBS’ role

Main tasks:

• Give advice to the Commission

• Promote consistent implementation and application of EU legislation

• Exchange information and enhance convergence of supervisory practices

Objectives:

Promote cross-border supervisory co-operation and the safety and soundness of the EU financial system through:

• good supervisory practices

• efficient and cost-effective approaches to supervision of cross-border groups

• effective regulation

• level playing field and proportionality

Page 5: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 5

CEBS’ activities

• Development of EU supervisory reporting frameworks

• Templates for regular reporting by banks to EU supervisory authorities

• Based on Basel II and CRD for solvency information

• Based on IFRS for financial information

• COREP for solvency information

• FINREP for financial information

• From a flexible harmonised towards a more uniform approach

Page 6: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 6

CEBS’ stance towards XBRL

Cover note to the Framework for Common Reporting of the New Solvency Ratio

“While national supervisory authorities are free to decide on the technical transmission specifications to implement the reporting framework, CEBS considers that XBRL can be a helpful tool in constructing a harmonised European reporting mechanism. CEBS will therefore develop an XBRL platform and make it available free of charge to national authorities and supervised institutions. XBRL taxonomies will be developed for both the COREP and FINREP (Financial Reporting) frameworks.”

Page 7: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 7

CEBS’ organisation linked with XBRL

CEBS

SWG on Auditing

Expert Group on Financial information

SWG on Accounting

SWG on Reporting

COREP network

FINREP network

XBRLP network

Page 8: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 8

Plusses of XBRL for supervision

•XBRL enable cross-border groups to use the same IT transmission standard in different jurisdictions.

Avoiding having multiple systems for each country

•Small banks may benefit from a free standard like XBRL and the economies of scale derived from the development of the XBRL taxonomy by CEBS.

Possibility of using same system to other reporting (e.g. tax returns)

•Supervisors may benefit from economies of scale. XBRL provides the flexibility to accommodate in a consistent manner different reporting and legislation.

Page 9: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 9

Plusses of XBRL for supervision

•XBRL provides the IT framework for the reuse of harmonised terms and definitions.

Regardless of the lay-out of the national templates

Regardless of the language used in the national implementations.

With higher levels of reliability, since the taxonomies incorporate the validation rules needed.

References included in the taxonomies determine the content of the items.

The more widespread is the use of XBRL,the more benefits from XBRL can be obtained.

Page 10: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 10

Conceptually…

Reporting before… and after…

Supervisor 1

Supervisor 3

Supervisor 2

Different templates and definitions Common templates and definitionsSeveral formats Single formatDifferent technologies XML/XBRL recommended

Supervisor 1

Supervisor 2

Supervisor 3

XBRL

Group A

Group B

Group C

Group A, B, CCommon

framework

XBRL

Page 11: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 11

Use of XBRL in EU supervisory authorities (COREP)

Applying XBRL (12) Not applying XBRL (12) Planned XBRL (1) No information (5)

Page 12: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 12

Insight: COREP taxonomy in CEBS membersCountry Taxonomy

VersionXBRL

Belgium 1.2.4 Compulsory

Bulgaria Planned -

Cyprus 1.2.3 Compulsory

Germany 1.2.3 Optional

Spain 1.2.2 Compulsory

Finland 1.2.3 Optional

France 1.2 Compulsory

Ireland 1.2 Optional

Lithuania - Compulsory

Luxembourg - optional in 2007, compulsory in 2008

Netherlands 1.2.3 Optional

Norway 1.2.3 Optional

Poland 1.2.3 Compulsory

Page 13: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 13

CEBS actions for 2008 - 2011

Actions

1) Differences inprocedures

2) Differences in datadefinitions

3) Differences in nationalimplementations

4) Differences in IT

•Standardise remittance date•Standardise reporting frequency

•Increase transparency of Q&A•Industry experts’ networks•Clarify FINREP IQs

•Streamlining FINREP•User test COREP•Subsidiaries data requirements•Simplified approaches for cross-border groups reporting

•Versioning policy

Convergence in reporting

FacilitatesXBRL

Page 14: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 14

CEBS actions for 2008 on supervisory reporting

Differences in reporting procedures: remittance date (COREP)

•Corridor approach converging by 2011.

•Towards a common remittance date

•Difference between consolidated reporting & and solo reporting

Page 15: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 15

CEBS actions for 2008 on supervisory reporting

Differences in reporting procedures: reporting frequency

• Towards a basic quarterly frequency

• Some exceptions, eg

– Investment firms under art. 9 Directive 2006/49/EC

– Summarised information of capital ratio in solo basis for

SA institutions

– Use of templates for data collection for monetary policy.

COREP

FINREP

Page 16: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 16

CEBS actions for 2008 on supervisory reporting

Differences in data definitions:

• Intensify use of current Q&A mechanisms

• Publish Q&A in national websites

• Set up panel of industry experts in reporting

• Clarification of scope of Q&A in FINREP: no IFRS interpretation

CRD

National laws

Supervisory rules

Supervisory practises

Page 17: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 17

CEBS actions for 2008 on supervisory reporting

Differences in national implementations

Streamlining of FINREP

• Lower level of commonality in non-core information

• Identify areas with low supervisory interest

• Reasons behind the lack of usage of certain templates

• It implies a net reduction in the required data

User-tests of COREP

• Actual use tested in practise

• Involvement external panel

Page 18: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 18

CEBS actions for 2008 on supervisory reporting

Differences in national implementations:

analysis of simplified reporting procedures for cross-border groups

• Investigate potential alternatives (one-entry point, interconnected databases)

• Analyze:

– Cost and benefits

– Technical and business requirements

• Have in mind relevant obstacles (e.g. national discretions)

Page 19: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 19

CEBS actions for 2008 on supervisory reporting

Differences in IT mechanisms:

harmonised versioning policy

• Cooperation to modify at the same time the Guidelines

• Cooperation to change the version of the XBRL taxonomy at the same time.

• Give enough time to industry and national authorities to assimilate any changes.

Page 20: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Edit document title in the view master slide CEBS document code | 00 Month 2004 20

Outline

•What is CEBS?

•Plusses of XBRL for supervision

•Use of XBRL in the EU supervisory authorities

•Priorities to a more harmonised EU reporting framework

Page 21: XBRL as a tool for supervision Arnoud Vossen Chairman CEBS Expert Group on Financial Information

Contact details: Arnoud Vossenemail: [email protected]: +31 (0) 20 524 39 03