The information supply chain FDIC XBRL International Conference Mr. Inscoe

The information supply chain

FDIC XBRL International Conference

Mr. Inscoe


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



WHY XBRL ??



WHY XBRL ??


Business rules are well-defined but proprietary - an open standard will enable enhancements and efficiencies not otherwise available

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

WHY XBRL…..


It’s the next step in a continuing evolution

The FDIC collects and disseminates information


• Supervise banking organizations (on- and offsite) • gage compliance with law and regulation

• manage insurance funds

• others

The information is used for a variety of purposes

The FDIC collects and disseminates information

Information is disseminated to the public


• Banks become more competitive

• Public disclosure – market discipline -- mitigates moral hazard

• Information used to benefit public policy

Public Policy Role:

Information is used by law makers and

supervisors to craft changes to legislation

and regulation

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


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

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

Call Reports use GAAP for recognition and

measurement purposes, are structured to

require that all banks report details consistently

This ensures comparability among

reporters

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


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



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



dissemination

An open standard will facilitate comparisons with non-banking organizations

Immediate benefits include more timely availability of data

Over-all cost reduction ultimately



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



dissemination

How will XBRL contribute?




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



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”



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

Reliable information = good decisions


Opportunities,

Challenges,

Ramifications


The business process re-engineered


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

Ramifications for legacy systems


• 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

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”

•




Widespread adoption will facilitate connection of regulatory data with other information sources

Enhance transparency


Public Policy considerations


• 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



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


Questions ?


Documents

The information supply chain FDIC XBRL International Conference Mr. Inscoe