COREP XBRL Reporting in Norway Presentation

1. COREP XBRL Reporting in Norway Presentation 25.11 2010 Harald Furnes / Aftab Ahmad

2. Agenda • Background – the COREP-No project and structure of the Norwegian financial market • Overview of the XBRL solution implemented • Composing a valid COREP-No XBRL-file from a filled Excel template workbook (using RBME Lite)- Starting from report IRB or SA- Including validation (business rules) • Submission process- Log in - Validation and error handling routine • Conclusion and future work 17.11.2014

3. 1. Background:COREP project at FSA of Norway • Decided early (2004) to follow CEBS guidelines on common reporting (COREP-templates) • Finanstilsynet participated as an observer in CEBS’ COREP group for common European reporting • The Norwegian banking industry was informed about the COREP-templates and the recommended standard XBRL through informal and formal consultations from 2004 to 2007. • Finanstilsynet made a final decision in 2006 to follow CEBS guidelines and implement COREP Framework (COREP-templates and XBRL-taxonomies developed by CEBS). • COREP project initiated in summer 2007. 17.11.2014

4. 1. Background: COREP project at FSA of Norway • Main objectives: • To follow CEBS’ guidance and advice on Common reporting (COREP) and technical standard (XBRL) • To establish a modernized and effective reporting framework/solution • To establish an infrastructure and competence within the organization to make Finanstilsynet able to extend the framework to other XBRL-reports 17.11.2014

5. 1. Background: COREP project at FSA of Norway • The goal is to implement the COREP reporting framework based on XBRL, with the possibility of reporting in an alternative format, Excel. (XBRL not mandatory) • Reasons for XBRL: • Harmonising banking supervision practices in Europe (aiming a harmonised European reporting mechanism) • Make use of already defined taxonomies (elements, dimensions, linkbases, validation rules) developed by CEBS. • Modernized data collection system - XBRL is based upon a well established technology (XML) • Reasons for alternative format (Excel): • XBRL is not a common standard yet • Finanstilsynet wants to give the reporting institutions time to implement XBRL. • It has not yet been decided whether the alternative reporting format (Excel) will be a permanent or a temporary solution. 17.11.2014

6. 1. Background: COREP-project at FSA of Norway • Main activities in the project: • Taxonomy extension: COREP to COREP No (national discretions, reduction of reporting elements and adding elements) • Solution to convert Excel-templates to XBRL-files, including some business validation during converting • Internet-portal based on UBMatrix software and some specific developments made by CIBER Norge, our local vendor, needed to meet the requirements from Finanstilsynet • Functionality in the portal: Automation of the reporting processes - submission, validation process, data storage, notifications, submission history etc. • Version management (taxonomies, templates) 17.11.2014

7. IRB SA Banks 7 131 Finance companies and mortgage companies 6 54 Holding companies 2 10 Securities houses 1. Background:Structure in Norway 146 • 2 different reports (IRB, SA), 7 different groups of reporting institutions, 2 different levels of reporting (solo vs consolidated), 4 different frequencies for reporting • Resubmission allowed after closing date 17.11.2014

8. Finanstilsynet 1 Taxonomy-adaptation/ -administration COREP CEBS COREP-No Make XBRL 5a xbrl 2 Finanstilsynets Internettportal -Log in -Submit -Control and validate -Processing -Saving COREP NO taxonomy 4 Use of Excel Excel plug-in and template package 3 Excel plug-in and template package -Validate -Generate xbrl-file 6 Database 5b xbrl XBRL-solution: 17.11.2014 Figure 1

9. 2. Overview:Description of activities involved in the reporting process 1. Finanstilsynet implements the Norwegian adaptations to COREP, in the COREP-No taxonomy 2. The COREP-No taxonomy is published on Finanstilsynet’s website. The taxonomy is used by reporting institutions who choose alternative 5a in figure 1. 3. The Excel template with plug-in (which references the taxonomy) is published on Finanstilsynet’s website. The Excel template with plug-in is an alternative to generating a valid COREP-No XBRL file (see 5b in figure 1). • Finanstilsynet prepares for submission of new reporting period. • The reporting institutions can generate their xbrl files in two different ways: • The reporting institution generates an XBRL file directly from their systems • Excel template with plug-in: The reporting institution fills out an Excel template as specified in step 3. The Excel plug-in performs business rules validation and generates a valid XBRL file. At the end, the XBRL-file is submitted via web portal. During submission, the xbrl-file is validated against the taxonomy 6. Finanstilsynet monitors submissions in the new portal 17.11.2014

10. 3. Composing a COREP-No XBRL-file:The Excel plug-in (RBME Lite) • Developed in .Net and C#(requires some standard Microsoft components for installation) Files in the template package: • Excel template workbook (IRB/SA) • Context file (Taxonomy) • Mapping file (Link from taxonomy to cells in excel) • Validation file (Business rules) – will not be needed when formula linkbase is fully implemented 17.11.2014

11. 3. Composing an XBRL-file from afilled excel template: Demonstration of different variations • A COREP-No xbrl instance file with errors in business rules • A COREP-No xbrl instance file without errors in business rules • A COREP-No xbrl instance file with errors according to the taxonomy and how to identify the errors using validation routine (during submission) 17.11.2014

12. 3. Composing an XBRL-file from a filled excel template: RBME Lite Generate xbrl instance file Localize errors 17.11.2014

13. 4. Submission process:EAS – login 17.11.2014

14. 4. Submission process: EAS - submission 17.11.2014

15. 4. Submission process :Error handling routine All reporting data is uniquely defined by a combination of concept and context RBME Lite has an error handling routine that can identify the error location (cells) in the Excel template workbook 17.11.2014

16. 4. Submission process : Error handling routine 17.11.2014

17. 4. Submission processMain webpage http://www.finanstilsynet.no/no/Bank-og-finans/Banker/Tilsyn-og-overvakning/Rapportering/COREP-/ This webpage includes: • Link to the portal • User guidelines • COREP templates • Necessary software 17.11.2014

18. 5. Conclusions • Minimum burden on reporting institutions (by providing the possibility to convert the existing COREP Excel template to XBRL instance file) • Save time and resources (for both reporting institutions and supervisor) by enforcing validation before and during submission • For supervisor: better quality of data and a flexible/standard data format for further analysis and utilization • Possibility to exchange reported data with others (especially supervisory institutes) who have implemented COREP • Challenging project (complex taxonomy, immature software and limited skilled resources) 17.11.2014

19. 5. Future work for FSA Norway • Implement new COREP versions (CRD II, CRD III …) • Develop solutions for XBRL data analysis and utilization • Encourage the institutes to implement XBRL • Possibly develop web services where reporting institutions can submit their instance files directly from their systems 17.11.2014

20. Aftab.ahmad@finanstilsynet.noHarald.furnes@finanstilsynet.no