Applying XBRL: U.S. Bank Regulators’ Call Report Modernization Project

1. Applying XBRL:U.S. Bank Regulators’ Call Report Modernization Project OMG Conference Phil Walenga, Assistant Director, FDIC XBRL International Regulatory Chair November 18, 2002

2. Background • Bank regulators – FDIC, FRB, OCC – preparing to use XBRL • Use XBRL to collect, validate and distribute quarterly bank Call Reports • FDIC member of XBRL and heavily involved in its usage • Research, testing, initial development of XBRL nearing completion The views and opinions expressed in this presentation are those of the speaker and do not necessarily represent the position of the FDIC.

3. Inflexible Time consuming & not comparable Rekey Data and Analyze Inconsistent Stale information Cycle of Inefficiency Imprecise Data Laborious and error prone

4. Why is XBRL Important to FDIC? • 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. XBRL • XBRL International, Inc. supports and manages the XBRL Standard • eXtensible Business Reporting Language • www.xbrl.org • 170 plus worldwide members • Royalty free, open, international standard to exchange financial information • Exclusive standard for this purpose • FDIC joined January 2001 • U.S. and Intl’ Steering Committee member

6. 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: using xlink – labels, definitions, presentation, references, calculations, formulas and versions control ‘Output’ result of tagging data using one or more taxonomies XBRL- Instance Framework 1 or more taxonomies =

7. Specifications, Taxonomies, Pilots and Implementations Specification XBRL V2 XBRL V2.1 Version Formulas XBRL V1 IAS Intl Fin Rpt IAS Disclosures US C&I PFS Call Reports UK C&I PFS UK Taxes Credit Risk Assessment Frameworks Germany PFS Taxonomies Bank & Savings US Fin. Rpt. Framework Japan PFS US C&I Pilots Call Report Pilot NASDAQ Pilot FDIC POC Implementations Call Report Live APRA V1 Live APRA V2 Live Inland Rev Live 2004 2003 2000 2001 2002

8. Call Report Project • 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, 1,700 reasonableness edits • Instructions 394 pages in PDF file • Relied upon for supervision, bank closings, deposit insurance assessments, bank and industry monitoring.

9. XBRL Call Report Development • Completing analysis of report requirements • FDIC, with contractor support, building XBRL taxonomies Call Report forms, instructions, validation criteria, and FRB MDRM terms dictionary for March ‘01 and March ‘02 • Complete year end 2002 • Release March 2002 Call Report draft taxonomies to WWW.FDIC.GOV • FDIC, with contractor support, creating tool for Call Report Analysts to create and maintain Call Report taxonomies • Complete year end 2002

10. Future: Regulatory Report Supply Chain Instructions Demographic Report Vendors Internet Report Forms Meta Data Repository XBRL Call Report Framework MDRM Dictionary Test and Intraseries Edit Data Banks Edits Business Rules

11. XBRL Validation Only- Time Savings 2 Weeks Less Current Proposed Current Proposed

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

13. 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

14. Bank and Savings Industry (BASI) • BASI Framework under development • Use by bankers for internal reporting • E&Y, KPMG LLP, PwC, FDIC, FRB, and others are participating • Analyzed a number bank SEC filings • Converting now to XBRL format • Expect draft release by year end

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

16. US Financial Reporting Taxonomy 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 FRTF General Concepts FRTF Primary Terms Bank & Savings Institutions U.S. Bank Regulatory Reporting Framework

17. 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

18. Impacts – Mid to Long Term • Banks automate processing of regulatory reports, begin to use “Off the Shelf” data • 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 • Integration of reports and holistic view of the frequency of reports

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

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