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XBRL CEBS Workshop

XBRL CEBS Workshop. Giancarlo Pellizzari Head of Prudential Policy Dexia Group. Amsterdam, 6-7 November 2007. Agenda. XBRL CEBS Workshop – Nov ‘07. 1. Dexia and XBRL: a reminder. Introduction Dexia’s views on XBRL development Organization and structure Some words on COREP.

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XBRL CEBS Workshop

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  1. XBRL CEBS Workshop Giancarlo Pellizzari Head of Prudential Policy Dexia Group Amsterdam, 6-7 November 2007

  2. Agenda XBRL CEBS Workshop – Nov ‘07 1. Dexia and XBRL: a reminder • Introduction • Dexia’s views on XBRL development • Organization and structure • Some words on COREP 2. FINREP: the first step to a Dexia “public” taxonomy • FINREP challenges • The FINREP Common Trunk (FINREP TC) • The link with our financial statements • The first step to a Dexia’s financial statements taxonomy 3. Conclusions

  3. Dexia and XBRL : a reminder • 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 XBRL CEBS Workshop – Nov ‘07 Introduction : What is Dexia?

  4. Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov ‘07 Introduction : What is Dexia?

  5. Dexia and XBRL : a reminder • 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. XBRL CEBS Workshop – Nov ‘07 Organization and structure: the regulatory environment

  6. Dexia and XBRL : a reminder • 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 XBRL CEBS Workshop – Nov ‘07 Organization and structure: the regulatory environment

  7. STATUTORY BE CONSOLIDATED CONSO DHLD FR SAP Holding LU INTERNAL REPORTING MAGNITUDE COMMON PARAM CONSO DBB CONSO DCL EXTERNAL REPORTING DBB SPEC. LOCAL PARAM CONSO DBL DCL CHECK CHECK DBL VISUAL SCOPE MIS CONSO ESSBASE Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov ‘07 Organization and structure: infrastructure

  8. Booking entityX Accounting systems Management systems Market risk Operational Risk FERMAT J-Port Files DMV3 MAGNITUDE FERMAT INPUT datas Aggregated results Market risks Aggregated results Operational risks Data’s Equity Aggergated results Accounting RWA calculation engine Detailed results Regulatory reporting Aggregated results Credit risks FINREP forms COREP forms Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov ‘07 Organization and structure: infrastructure

  9. Dexia and XBRL : a reminder • 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.) XBRL CEBS Workshop – Nov ‘07 Dexia’s views on XBRL development

  10. Dexia and XBRL : a reminder • 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 XBRL CEBS Workshop – Nov ‘07 Some words on COREP

  11. Etc. Etc. Operational systems Exel template Finrep Xbrl taxonomy Finrep Excel template Belgian Corep Xbrl taxonomy Belgian Corep ETL Etc. Finrrep xbrl Construction XBRL and validation Input via scripts Oracle Creating Excel XBRL Corep UBMatrix/ ReportBuilder (XBreeze) Feed manuel corrections (automatic) BO universe XBRL database Dexia and XBRL : a reminder XBRL CEBS Workshop – Nov ‘07 Some words on COREP

  12. FINREP: the first step to a Dexia “public” taxonomy • 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) XBRL CEBS Workshop – Nov ‘07 FINREP challenges

  13. 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 The FINREP CT: the principle

  14. FINREP: the first step to a Dexia “public” taxonomy • Counterparties XBRL CEBS Workshop – Nov ‘07 The FINREP CT: practical issues

  15. FINREP: the first step to a Dexia “public” taxonomy • CEBS’ B/S XBRL CEBS Workshop – Nov ‘07 The FINREP CT: examples • CB’ B/S

  16. FINREP: the first step to a Dexia “public” taxonomy • CSSF’ B/S XBRL CEBS Workshop – Nov ‘07 The FINREP CT: examples

  17. FINREP: the first step to a Dexia “public” taxonomy • CBFA’ B/S XBRL CEBS Workshop – Nov ‘07 The FINREP CT: examples

  18. FINREP: the first step to a Dexia “public” taxonomy • Dexia’ B/S XBRL CEBS Workshop – Nov ‘07 The FINREP CT: examples

  19. FINREP: the first step to a Dexia “public” taxonomy • Dexia’ B/S: links with Magnitude’s chart of account XBRL CEBS Workshop – Nov ‘07 The FINREP CT: examples

  20. 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 FINREP: the first step to a Dexia “public” taxonomy XBRL CEBS Workshop – Nov ‘07 Links with our financial statements

  21. Example 1: link from F/S to FINREP FINREP: the first step to a Dexia “public” taxonomy XBRL CEBS Workshop – Nov ‘07 Links with our financial statements

  22. Example 2: additional detail FINREP: the first step to a Dexia “public” taxonomy XBRL CEBS Workshop – Nov ‘07 Links with our financial statements

  23. 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 ? FINREP: the first step to a Dexia “public” taxonomy XBRL CEBS Workshop – Nov ‘07 The first step to a first Dexia’s financial statements taxonomy

  24. Conclusions • 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) XBRL CEBS Workshop – Nov ‘07 Conclusions

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