short term has no future amsterdam, 6-7 november 2007 giancarlo pellizzari head of prudential policy...
TRANSCRIPT
Short Term Has No Future
Amsterdam, 6-7 November 2007
Giancarlo PellizzariHead of Prudential PolicyDexia Group
XBRL CEBS Workshop
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1. Dexia and XBRL: a reminder
Agenda
2. FINREP: the first step to a Dexia “public” taxonomy
XBRL CEBS Workshop – Nov ‘07
- FINREP challenges- The FINREP Common Trunk (FINREP TC)- The link with our financial statements- The first step to a Dexia’s financial statements taxonomy
- Introduction- Dexia’s views on XBRL development- Organization and structure- Some words on COREP
3. Conclusions
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Introduction : What is Dexia?
Dexia and XBRL : a reminder
XBRL CEBS Workshop – Nov ‘07
Dexia Holding: 23,2 EURBn Capitalization, world leader in public financing– Dexia Bank Belgium– Dexia Crédit Local (France)– Dexia BIL (Luxembourg)
– FSA (Financial Security Assurance) – USA – Credit enhancement– Dexia Insurance Belgium– Deniz Bank (6th largest private bank in Turkey)– Factoring, leasing, real estate, IT, etc.
A group of 241 entities, 33.321 staff members and present in 33 countries
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Introduction : What is Dexia?
Dexia and XBRL : a reminder
XBRL CEBS Workshop – Nov ‘07
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Organization and structure: the regulatory environment
Dexia and XBRL : a reminder
XBRL CEBS Workshop – Nov ‘07
Home – host supervisors:Home supervisors (working in a college)
– CBFA – Belgian Banking, Finance and Insurance Commission (as lead supervisor)– The French Commission Bancaire– Commission de Surveillance du Secteur Financier (Luxembourg) - CSSF
Host supervisors– EU supervisors
• Bundesbank – Bafin (Germany)• Banca d’Italia (Italy)• Banco d’Espana (Spain)• Etc.
– Other countries• BRSA (Turkey)• SEC (USA)• OFSI (Canada)• Japan FSA• Singapore• Etc.
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Organization and structure: the regulatory environment
Dexia and XBRL : a reminder
XBRL CEBS Workshop – Nov ‘07
COREP and FINREP reporting:COREP
– 23 COREP to deliver to 12 different regulators
– 7 other Basel II reporting to other 7 regulators
– Of which:• 4 regulators requiring XBRL• 3 using XBRL as an option
FINREP– 13 FINREP to deliver to 8 different regulators
– Of which:• 4 regulators requiring XBRL• 3 using XBRL as an option
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Organization and structure: infrastructure
Dexia and XBRL : a reminder
XBRL CEBS Workshop – Nov ‘07
BE
LUFR
SAPHolding
MAGNITUDECOMMON PARAM
SPEC. LOCAL PARAMDBB
DCL
DBL
STATUTORY CONSOLIDATED
CONSODHLD
CONSODBB
CONSODCL
CONSODBL
VISUALSCOPE
MIS CONSOESSBASE
CHECK CHECK
INTERNAL REPORTING
EXTERNAL REPORTING
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Organization and structure: infrastructure
Dexia and XBRL : a reminder
XBRL CEBS Workshop – Nov ‘07
Accounting systems
Managementsystems
Booking entityX
Files DMV3
INPUT datas
Detailedresults
FERMAT
RWA calculation
engine
Regulatoryreporting
AggregatedresultsMarketrisks
Aggregated results
Credit risks
Aggregatedresults
Operationalrisks
Data’sEquity
COREPforms
FINREPforms
Aggergated results
Accounting
MAGNITUDE
Market riskOperational
RiskFERMAT J-Port
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Dexia’s views on XBRL development
Dexia and XBRL : a reminder
XBRL CEBS Workshop – Nov ‘07
• Use XBRL as a tool for more harmonization, flexibility and gain of time both vertically and horizontally
• We thus need:– XBRL at the beginning of the reporting processes (public, COREP, FINREP
and internal)
– Softwares that read XBRL
– One integrated database (kind of Group taxonomy)
• “One fits all”• This is more efficient if XBRL used by “non-regulators” (Tax in
Netherlands, AML in Spain, Ministry of Finance in Belgium, Central balance sheet offices, etc.)
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Some words on COREP
Dexia and XBRL : a reminder
XBRL CEBS Workshop – Nov ‘07
• The main issue in COREP is the “risk gathering”, i.e. COREP is build using information from different departments working in different ways (FINREP is “easier” on this because produced by only one department):– Accounting, Operational risk and market risk decentralized on a centralized
system
– Credit risk centralized on a centralized system
– Other banks may have other structures (but this is often the one chosen for cross-border groups)
• This combined with the “national discretions” for COREP implementation makes it a nightmare
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Some words on COREP
Dexia and XBRL : a reminder
XBRL CEBS Workshop – Nov ‘07
Etc.Finrrep xbrl
Etc. Etc.
Exel template Finrep Xbrl taxonomy Finrep
Creating Excel
Construction XBRL and validation
Excel templateBelgian Corep
Xbrl taxonomyBelgian Corep
XBRLCorep
Feed manuel corrections(automatic)
UBMatrix/ReportBuilder (XBreeze)
OracleInput via scripts
Operationalsystems
ETL
BO universe
XBRL database
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FINREP challenges
FINREP: the first step to a Dexia “public” taxonomy
XBRL CEBS Workshop – Nov ‘07
• Link with IFRS and banks’ financial statements• National discretions:
– CEBS guidelines not always clear– CEBS guidelines not always respected by member states– Changes in the “business format” may have insidious impact on the taxonomy (deleting a line changes the
definition of the total – unless “among which”)– Additional information inconsistent with the CEBS format– Sometimes, regulators may give interpretations to IFRS rules
• Dimensions:– Preferred instead of tuples (link with IASCF?)– More standardization may be a benefit (exhaustive list of flows used throughout FINREP)– Definitions of some dimensions (counterparties => links with COREP, ECB, etc.)
• Translations may add confusion (or precision) • Better definition of the concepts for the IASCF but not only (equity detail)
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The FINREP CT: the principle
FINREP: the first step to a Dexia “public” taxonomy
“The same information should be produced only once”
as such, certain elements have been defined as common i.e. :
– Elements requested by the 3 mains regulators (CB, CBFA, CSSF)
– Elements requested by the holding (in the consolidated financial statements)
XBRL CEBS Workshop – Nov ‘07
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The FINREP CT: practical issues
FINREP: the first step to a Dexia “public” taxonomy
• Counterparties
XBRL CEBS Workshop – Nov ‘07
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The FINREP CT: examples
FINREP: the first step to a Dexia “public” taxonomy
• CEBS’ B/S
XBRL CEBS Workshop – Nov ‘07
• CB’ B/S
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The FINREP CT: examples
FINREP: the first step to a Dexia “public” taxonomy
• CSSF’ B/S
XBRL CEBS Workshop – Nov ‘07
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The FINREP CT: examples
FINREP: the first step to a Dexia “public” taxonomy
• CBFA’ B/S
XBRL CEBS Workshop – Nov ‘07
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The FINREP CT: examples
FINREP: the first step to a Dexia “public” taxonomy
• Dexia’ B/S
XBRL CEBS Workshop – Nov ‘07
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The FINREP CT: examples
FINREP: the first step to a Dexia “public” taxonomy
• Dexia’ B/S: links with Magnitude’s chart of account
XBRL CEBS Workshop – Nov ‘07
2020
Links with our financial statements
FINREP: the first step to a Dexia “public” taxonomy
XBRL CEBS Workshop – Nov ‘07
• According to the principles applied to FINREP, we have to map FINREP tables to the financial statements. It implies that:– Interpretations used for financial statements and mapping from financial
statements to magnitude accounts have to be applied for FINREP
– The detail in the financial statements have to be reproduced in FINREP
– Analysis of the financial statements will be mapped to the FINREP tables
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Links with our financial statements
FINREP: the first step to a Dexia “public” taxonomy
XBRL CEBS Workshop – Nov ‘07
• Example 1: link from F/S to FINREP
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Links with our financial statements
FINREP: the first step to a Dexia “public” taxonomy
XBRL CEBS Workshop – Nov ‘07
• Example 2: additional detail
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The first step to a first Dexia’s financial statements taxonomy
FINREP: the first step to a Dexia “public” taxonomy
XBRL CEBS Workshop – Nov ‘07
• Taxonomies– IASCF– FINREP – CBFA– CB– CSSF
• Dexia ?– For financial statements– For FINREP– What would be the link with COREP taxonomy (if one could exist?)– For tax purposes ?– Others ?
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Conclusions
Conclusions
XBRL CEBS Workshop – Nov ‘07
• Dexia has developed strong links between FINREP and its published financial statements. This will help for the Pillar 3 publication.
• From recent CEBS’ Public Hearing on supervisory reporting:– Long term: CEBS intention to have harmonized reporting for 2011
– Short term:• Issues : differences in procedure, definitions, national implementation and IT• Solutions:
– Group-wide basis
– Home-host perspective
– Where it is relevant
– Case by case basis.
• “Promote” FINREP outside Europe (Morocco, Croatia and others)