The information supply chain

1. The information supply chain Mr. Inscoe FDIC XBRL International Conference

2. The information supply chain The FDIC collects and disseminates very large information data sets U.S. banking regulators working together to modernize information collection and dissemination Opportunities, challenges and ramifications FDIC XBRL International Conference

3. The information supply chain WHY XBRL ?? FDIC XBRL International Conference

4. The information supply chain WHY XBRL ?? Business rules are well-defined but proprietary - an open standard will enable enhancements and efficiencies not otherwise available FDIC XBRL International Conference

5. A considerable amount of detailed information is collected from 8,300+ banks Banks report up to 1,200 financial items each quarter GAAP (measurement and recognition) There is a long time-series FDIC has normalized the data for time series comparisons The information is organized into large data sets Published on www.fdic.gov

6. It’s the next step in a continuing evolution WHY XBRL….. FDIC XBRL International Conference

7. The FDIC collects and disseminates information The information is used for a variety of purposes • Supervise banking organizations • (on- and offsite) • gage compliance with law and regulation • manage insurance funds • others FDIC XBRL International Conference

8. The FDIC collects and disseminates information • Banks become more competitive • Public disclosure – market discipline -- mitigates moral hazard • Information used to benefit public policy Information is disseminated to the public FDIC XBRL International Conference

9. Public Policy Role: Information is used by law makers and supervisors to craft changes to legislation and regulation

10. U.S. banking regulators working together to modernize information collection and dissemination three federal regulators coordinate reporting requirements, share data more than 8,300 U.S. banks submit extensive financial data each quarter information is validated by the regulators before its published today it can take 60 days before all information is released FDIC XBRL International Conference

11. Call Report content is determined by the interagency Federal Financial Institutions Examination Council (FFIEC). Forms and instructions are available on FDIC’s public web site www.fdic.gov

12. The Call Report filed by banks with foreign offices includes 25 schedules and 1,200+ items. Instructions = 450 pages Plus GAAP references edit checks = 1,200

13. Call Reports use GAAP for recognition and measurement purposes, are structured to require that all banks report details consistently This ensures comparability among reporters

14. The public currently downloads about 1 million Call Report pages per year The information is also disclosed in analytical systems that allow customization and acquisition of databases More than 5 million pages of information being published ID/SDI

15. U.S. banking regulators working together to modernize information collection and dissemination data is validated by the regulators who perform nearly 1,200 edit checks to identify math and other reporting errors all banks are required to submit reports electronically banks purchase software from the private sector to prepare and submit reports FDIC XBRL International Conference

16. U.S. banking regulators working together to modernize information collection and dissemination A new business model will provide an extensible platform for collecting and sharing information Three U.S. bank regulators FDIC, OCC and Federal Reserve – have contracted Unisys and partners to create a shared facility to collect information FDIC XBRL International Conference

17. U.S. banking regulators working together to modernize information collection and dissemination An open standard will facilitate comparisons with non-banking organizations Immediate benefits include more timely availability of data Over-all cost reduction ultimately FDIC XBRL International Conference

18. U.S. banking regulators working together to modernize information collection and dissemination Private sector role continues (regulators determine “what” private sector determines “how”) U.S. Banking agencies will be able to perform missions more effectively Banking organizations benefit from lower costs and more timely information FDIC XBRL International Conference

19. U.S. banking regulators working together to modernize information collection and dissemination How will XBRL contribute? FDIC XBRL International Conference

20. Business rules in standard format – XBRL -- will be published on the Internet • taxonomies have been created for Call Report forms and validation “edits” applied by the regulators • these business rules can be “consumed” by vendors and provided in software used to prepare Call Reports • banks will use this software to validate information before submitting it to the regulators How will XBRL contribute? FDIC XBRL International Conference

21. automated sharing of validation criteria and other business rules will enable efficiencies not available in the current process • providing “metadata” in XBRL format will enable banks to validate data before its submitted • data will be published upon receipt “straight through processing” How will XBRL contribute? FDIC XBRL International Conference

22. Call Report data reported by each bank will be published in XBRL format to facilitate sharing and use • data will no longer depend on software platforms • intelligence will be built into the process How will XBRL contribute? FDIC XBRL International Conference

23. Reliable information = good decisions

24. The information supply chain Opportunities, Challenges, Ramifications FDIC XBRL International Conference

25. change management critical • communication with large number of related parties • new staff roles, responsibilities, and job descriptions required to implement the new business model • ownership of process more widely distributed The business process re-engineered FDIC XBRL International Conference

26. Opportunities, challenges, ramifications • the new collection process will provide a feed into legacy applications • initial impact on numerous “downstream” systems minimized • ultimate impact - costs and benefits business justification Ramifications for legacy systems FDIC XBRL International Conference

27. Opportunities, challenges, ramifications • Other XBRL initiatives • Work with standards setting organizations -- BASI efforts identified 225 common concepts • new process can be extended to other “collections of data” How will XBRL contribute? FDIC XBRL International Conference

28. Opportunities, challenges, ramifications Widespread adoption will facilitate connection of regulatory data with other information sources Enhance transparency How will XBRL contribute? FDIC XBRL International Conference

29. Opportunities, challenges, ramifications • technology advances faster than regulation • improvements that provide more transparent information may also have implications for privacy • everyone should will benefit from lower collection costs Public Policy considerations FDIC XBRL International Conference

30. FOCUS GROUP PARTICIPATION 2:30 – 4:30 Friday, 11-7-2003 PWC 1420 5th Ave. Suite 400 6 blocks east of hotel between Pike & Union DISCUSSION ON RULE BASES, Jon Wisnieski FDIC XBRL International Conference

31. The information supply chain Questions ? FDIC XBRL International Conference