XBRL Applying the eXtensible Business Reporting Language XBRL Symposium, September 23, 2002

1. XBRLApplying the eXtensible Business Reporting LanguageXBRL Symposium, September 23, 2002 Phil Walenga, Assistant Director, DIR XBRL International Regulatory Chair

2. Key Points • We have a concrete business purpose for using XBRL • We have consensus and commitment within our agency and our regulatory partners to make this work • We are working collaboratively to design a solution to aid an audience broader that just the FDIC, or federal bank regulators • We have other components in place: standards, specifications and momentum The views and opinions expressed in this presentation are those of the speaker and do not necessarily represent the position of the FDIC.

3. Briefing Highlights • Why Is XBRL Important? • Regulatory Reporting Issues • Call Report Modernization Using XBRL • Bank Regulatory Reporting Framework • Bank and Savings Industry Framework • Timelines • Impacts

4. Why is XBRL Important? • 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. Reporting Issues • Adaptability - introducing new requirements is cumbersome • Inconsistency – interpretation of requirements may vary across reporting software • Report Preparation - can be a laborious, manual process for some institutions • Data Precision - needs improvement • Timeliness - current process is lengthy • User Needs - integrating data & requirements labor intensive for external analysts

6. FDIC Vision – “Real Time” Data • FDIC Chairman Donald E. Powell outlined a vision for the FDIC: .. “including anew program to offer real-time bank Call Report data..”

7. FFIEC Target - Call Reports • 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, 1,500 validation criteria • Instructions 394 pages in PDF file • Relied upon for supervision, bank closings, deposit insurance assessments, bank and industry monitoring.

8. Potential Beneficiaries • FDIC - A federal government agency established in 1933 to maintain stability and public confidence in the US financial system • Insures $3.1 trillion in deposits • Supervises 5,600 banks • Custodian for the financial reporting of 8,000+ banks • Manages receiverships for any failed US insured bank or thrift

9. Potential Beneficiaries (cont’d) • The Federal Reserve Board (FRB) • The Office of the Comptroller of the Currency (OCC) • Banks/Trade Associations • Software Vendors that provide specialized support • Business Analysts • Consumer

10. Objectives • Reporting Transparency for regulators, investors & depositors • Accuracy, currency and comparability • Adaptability to respond to changing business environment and emerging risks • Event driven reports • Efficiencies and Savings in Call Reporting and related processes • Reduce manual labor for agencies and banks • Integrate regulatory reports

11. Work Accomplished • FDIC, FRB, and OCC initial analysis of Call Report data requirements • FDIC developed draft Call Report taxonomies • FDIC developed proof of concept demonstration • FDIC, FRB, and OCC deployed common set of 1,500 Call Report validation criteria to Call Report SW vendors and banks in MS Excel format

12. XBRL Call Report Development • Completing analysis of report requirements • Instructions, validation criteria and report forms • FDIC building XBRL taxonomies Call Report forms, instructions, validation criteria, terms dictionary, business rules for March ‘01 to Dec. ‘02 • Complete year end 2002 • Release March 2002 Call Report taxonomies in October – publish to WWW.FDIC.GOV • FDIC creating tool for Call Report Analysts to create and maintain Call Report taxonomies • Complete year end 2002

13. Under construction • Business Analyst Tool • This is “the reporting form” • All Call Report analysts manage Call Report taxonomies • Not need to be XBRL developer • Art work of the form no longer important

14. Business Analyst Tool • Replaces MS Word, Adobe PDF and MS Excel files • Integrates forms, instructions and validation criteria

15. XBRL Components/Terminology XBRL-Specification Rules to governs creation of XBRL compliant files and conformance to the specification XBRL-Taxonomy A collection of financial facts for a certain period of time for a reporting entity. By report purpose, industry and jurisdiction. Schema and Linkbases Schema: dictionary of terms Linkbases: set of links to manage references, labels and relationships XBRL- Instance ‘Output’ result of tagging data using one or more taxonomies XSL - Style Sheet Presentation or transformation of tagged data Framework 1 or more taxonomies =

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

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

18. Bank and Savings Industry (BASI) • BASI Framework under development • Use by bankers for internal reporting • E&Y, KPMG LLP, PwC, D&T, FDIC, FRB, and others are participating • Analyzed a number bank SEC filings • Developed Excel worksheets including balance sheet, income statement, cash flow and notes • Converting now to XBRL format • Expect draft release by year end

19. Call Report BASI BASI equivalent items electronically mapped to Call Report and automatically filled

20. North American XBRL GAAP Framework, BASI and US Bank Regulatory Framework General Concepts Assets Liabilities Equity Owner Contributions Owner Distributions Comprehensive Income Income Expenses Document and Entity Primary Terms Cash Held to Maturity Securities Trading Securities Trade Secrets Goodwill Other Assets Minority Interest Equity Common Stock Net Income Extraordinary Items GlobalCommon Document NAFR General Concepts NAFR Primary Terms Bank & Savings Institutions U.S. Bank Regulatory Framework

21. Common Components

22. Taxonomies, Implementations Taxonomies US GAAP Framework U.S. Bank & Savings Implementations Call Report FFIEC Call Report Australian Regulator Version 2 Australian Regulator Version 1 2004 2003 2001 2002

23. 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

24. Impacts – Mid to Long Term • Banks automate processing of regulatory reports • 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 • Possible integration of reports and holistic view of the frequency of reports

25. Questions? Philip Walenga, Assistant Director, DIR Federal Deposit Insurance Corporation pwalenga@fdic.gov202-736-0569