SURFI

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Secrétariat général de la Commission
bancaireDirection de la Surveillance Générale du
Système Bancaire

• SURFI
• Unified FInancial Reporting System
• Banque de Frances financial data
• collecting system in XBRL

19th XBRL International Conference June 23th,
2009 Jean-Luc Menda Deputy Director Sylviane
Delarue Head of IT department Commission
bancaire Banque de France

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Presentation overview

• A new Information System
• Building the SURFI taxonomy
• SURFI IT Project

SENSITIVITY LEVEL  PUBLIC
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1. A new Information System

• Main IT strategy elements
• Implement the new COREP and FINREP reports in
  compliance with European harmonized framework
• Follow the CEBS recommendation to adopt XBRL in
  order to foster harmonization
• Change our reporting framework, promote
  harmonization and streamlining, launch the SURFI
  project
• Modernize our banks rating system and IT studies
  system

Banque de France direction de la Communication
SENSITIVITY LEVEL  PUBLIC
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1. A new Information System

• In this framework, progressive, but complete
  change of our reporting system
• in 3 stages
• COFINREP project implementing COREP et FINREP
  specifications beginning of 2006 mid 2008
• MODEC project modernizing the civil status data
  gathering June 2007 1st semester 2010
• SURFI project modernizing and streamlining
  regulatory data gathering April 2008 June
  2010

SENSITIVITY LEVEL  PUBLIC 
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1. A new Information System
MODEC project
SURFI project

COFINREP project
MODEC project
Go live
SURFI project v.1
SURFI project v.2
SURFI Business study Banking industry consultation
Taxonomies building
Financial Agents Information System Upgrade
Beginning of 2006
Mid-2007
June 2010
End of 2008 SURFI Taxonomy finalization
April 2008
Dec. 2010
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1. A new Information System

• COFINREP Project
• Allowed the implementation of the Basel II and
  IFRS impacts on the regulatory reports
• following the CEBS recommandations about the
  use of the XBRL standard for harmonized European
  COREP et FINREP reports.
• Launched in 1993, the present BAFI system, using
  a proprietary data format, couldnt be upgraded
  to reach the new specifications.
• A finished project
• New functionalities since September, dedicated to
  the supervision staff (e.g. specific reports)
• Next improvment the implementation of the
  tolerance margin .

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1. A new Information System

• MODEC project
• Offering to the banking industry a
  state-of-the-art interactive software dedicated
  to civil status processes
• Being able to get live data transmission from
  banks and give them feedback
• Taking into account the new European regulatory
  requirements
• integrate new categories of banks, in
  compliance with european directives,
• and reinforce the disclosures (the directive
  on Systems of payment requires the creation
  of an on-line registered bank database  
• Allowing the 80 IT systems of BoF to have an
  easy real-time acces to this system of reference
  (WEB site, WEB services, WEBSPHERE, ORACLE)
• End of the project 1st semester 2010 (this
  system of reference is necessary for SURFI)

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1. A new Information System

• Present data collection system BAFI
• Reporting entities 910 MFIs according to the
  French banking law, id. broad definition -, and
  156 investment firms
• 840 end-users within the Commission bancaire and
  the Banque de France
• Coverage data for statistical as well as
  prudential purposes, but BoP data partially out
  of the scope
• Same database, but limited harmonization of
  concepts and reporting formats, generating double
  collection of data
• On the technical side, database system based on a
  proprietary system developed in 1993, therefore
  somewhat mature

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1. A new Information System

• Modernizing the reporting system
• Result of a discussion process with the banking
  industry following the introduction of COREP and
  FINREP
• The industry requested
• a significant reduction of the reporting burden
• the elimination of double collection of data for
  supervisory and statistical purposes
• a better coordination in the definition of new
  reporting requirements between Banque de France
  departments

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1. A new Information System

• Launched in June 2007, the main objectives of the
  project
• Harmonize data collection for supervisory and
  statistical purposes, in eliminating double
  collection of data
• Alleviate the reporting burden through the
  streamlining of the entire present reporting
  system
• Take fully into account the ECB statistical
  revision package and articulate our own schedule
• Switch from a template centered approach to a
  data centrix approach, capitalizing on our XBRL
  experience for COREP and FINREP.

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1. A new Information System

• Simplified scope of the project
• (Tier 1) French Gaaps
• ( Tier 2) French Gaaps
• (Tier 3) IFRS or French Gaaps

Monetary statistics France (1)
Prudential data France branches abroad social
accounts (2)
Consolidated Prudential data (3)
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1. A new Information System

• Main results in terms of harmonization
• Broad harmonization between tier 1 and tier 2
  data, relying on the same accounting standards
  (French Gaaps)
• Limited between tiers 1 and 2 on the one side,
  and consolidated data established either on IFRS
  or French Gaaps, depending on the institution

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1. A new Information System

• Potential links between counterpart breakdowns
• Find bridges between the different reporting
  schemes (ESA95, FINREP and COREP)
• Make it easier for MFIs to manage counterparty
  breakdowns
• Build a table allowing to bridge ESA95
  counterpart sectors with SURFI counterparts, as
  well as COREP and FINREP

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1. A new Information System

• Other achievements of the project
• Elimination of double collection of data every
  data will be sent once either for statistical or
  prudential purpose
• A significant reduction in the volume of data
• A more risk-based oriented system consisting of
  core information sent by every institution,
  complemented by information sent depending on the
  level of activity in different areas (thresholds
  for interbank operations, financial instruments,
  credit)
• Release the global taxonomy

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Presentation overview

• A new Information System
• Building the SURFI taxonomy
• SURFI IT Project

SENSITIVITY LEVEL  PUBLIC
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2. Building the SURFI taxonomy

• The Commission Bancaire has followed a specific
  method to build its SURFI taxonomy.
• to facilitate the collaboration between
  business-oriented staff and IT specialists,
• and accelerate the global development process.
• This method is based on four main stages

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2. Building the SURFI taxonomy

• 1st stage
• Design of the SURFI future templates revised by
  three working groups
• the presentation rules have been determined
• regarding the format and the header, use of a
  specific colour code to identify dimension names
  and their values, facts, forbidden data,
  presentation labels
• the elements and dimensions codification will be
  implemented at the same time.
• Templates validation by Monetary departments,
  banking commission, ultramarine departments
  just finalized.

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2. Building the SURFI taxonomy
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2. Building the SURFI taxonomy

• 2nd stage
• implementation of the working principles of the
  SURFI taxonomy building of primary taxonomies
  and dimensions.
• primary taxonomies elements come from
• elements from the  accounting class data tree 
  
• other elements resulting directly from the
  templates
• each element has its own concept name, label,
  hierarchical links with other elements,
  regulatory references .

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2. Building the Surfi Taxonomy
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2. Building the SURFI taxonomy

• the XBRL element name was determined from the
  element labels belonging to the data tree or the
  templates.
• the normalisation of the template presentation
  and the data tree elements made easier the
  automatic initialization of most of the future
  taxonomies via a purpose-built tool.
• SURFI templates naming rules were validated by
  the users.
• templates were grouped by activity blocks
  (associated to a threshold or a theme).

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2. Building the SURFI taxonomy

• 3rd stage
• the dimension taxonomies , their values and
  their hierarchical order were elaborated.
• for each template design of the hypercubes.
• choice of a modularized model of taxonomy
  architecture (FINREP 1.3), in accordance with the
  best practices.

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2. Building the SURFI taxonomy

• Global architecture (templates et primaries )
  

T-CARTO-2008-12-31.xsd
T-BLANCHI-2008-12-31.xsd
T-SURFI-2008-12-31.xsd
t-sia-2008-31-12.xsd
t-ste-2008-31-12.xsd
t-sor-2008-31-12.xsd

Independant taxonomies
72 templates
p-sia-2008-12-31.xsd
p-ste-2008-12-31.xsd
p-s02-2008-12-31.xsd
p-s08-2008-12-31.xsd
p-s04-2008-12-31.xsd
p-sxx-2008-12-31.xsd
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2. Building the SURFI taxonomy

• 4th stage
• Implemention of all the business controls
• Determine the expected controls typology (in
  March),
• Select those that can be implemented in the
  taxonomy with the formulae recommendation
• Evaluate those which will be dealt with by
  specific developments
• Draw up the exhaustive list of business controls
  (by the end of May)
• Set up the formulae tables and integrate them
  into the taxonomy.

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2. Building the SURFI taxonomy

• 4th stage
• Focus on the controls typology data controls
• Basic operation ( - / ), AVERAGES, MIN, MAX,
  ABS
• EQUAL, GREATER, gt, LOWER, gt
• Alternative controls IF THEN ELSE
• Inter-instances / inter-taxonomy controls
  (between COREP, FINREP and/or SURFI)
• Inter-templates controls (into a single taxonomy)
  vs Intra-templates controls
• Existence of mandatory facts
• Controls using fixed parameters.

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2. Building the SURFI taxonomy

• 4th stage
• Focus on the controls typology trigger
  controls
• Tolerance margin (potentially depending on the
  control type)
• From a templates list reported by the bank
• business card data (including civil status
  data)
• Remittance date,
• Missing facts,
• After reception of all the data to be compared.

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2. Building the SURFI taxonomy

• 4th stage
• Focus on the taxonomy building
• Because of the deadline of the IT project and the
  lack of tools, we have to generate as
  automatically as possible the formulae tables
• Quite easy for
• primary item aggregation,
• dimension aggregation,
• (of which) checking
• Quite difficult for the others
• Some will need specific processing

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2. Building the SURFI taxonomy

• Some figures about SURFI Taxonomy
• 72 templates (some of them with sub templates)
• 950 elements from the data logical tree
• 1550 elements outside the data logical tree
• 23 dimensions

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2. Building the SURFI taxonomy

• Timetable
• End of September 2008 1st version of the
  templates .
• December 2008 release of SURFI Taxonomy version
  0.1.
• Beginning of April 2009 release of version 0.2
  (first optimization)..
• End of June 2009 release of SURFI Taxonomy
  version 1.0
• June 2009 1st part of formulae links table
  building
• BUT Supply of a technical paper, enclosing
  EXCEL sheets describing all the required controls
• September 2009 complete formulae links table
  building

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Presentation overview

• A new Information System
• Building the SURFI taxonomy
• SURFI IT Project

SENSITIVITY LEVEL  PUBLIC
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Current situation of IT system
BAFI
Financial Institution Information System

Accreditation
Prudential and accounting Reporting
Inside applications CB/BDF
Bâle II
SIGNECB
COREP Instances
Data Control and management
IFRS
Data mining
FINREP Instances
XBRL Taxonomy management
Accreditation
COFINREP
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Focus on SURFI - IT part of the project

• IT project milestones
• Launch of the project beginning of June 2008
• Requirements document created during the summer
  2008
• Open tender publication on the 31st of October
  2008
• Kick off with the chosen supplier at the end of
  February 2009
• Global design validation en May 2009
• Detailed studies are in progress
• Opening of the tests platform for the external
  actors in January 2010
• Opening of the 1st version of the SURFI portal in
  July 2010
• Opening of the 2nd version of the SURFI portal in
  December 2010

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General process of the SURFI project
Online Form Fill in
BdF Portal OneGate
Instance document
Instance document
XBRL Processor Ubmatrix XPE
Taxonomy
Output Processor
Rendering Processor INVOKE
SURFI
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Scope of the IT Project

• infrastructure module
• Easy navigation
• Access rights management
• Business Rules engine
• Static data management
• storage module
• ONEGATE (BDF Portal) exchange
• XBRL business controls (via formula or specific
  processing)
• Storage in ORACLE DB (XBRL files facts by
  facts)
• Instances aggregation
• Exceptions management

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Scope of the IT Project

• monitoring module
• Reporting duties defining (varying by threshold
  or activities)
• Remittance monitoring
• Mistakes or late data sending
• Exceptions management
• data use module
• Operating monitoring
• Exporting to other IT systems

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Scope of the IT Project

• reporting module
• Design of
• Regulation templates
• Synthesis (mono or multi-agents, mono or multi
  periods)
• Complex reporting (with different sources of
  information)
• taxonomies management module
• No solution today It remains to be done

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Main orientations

• Use of formula as well for FINREP COREP
• Acceptance of partial data delivery (according to
  the SURFI rules of data remittance)
• Instances delivery based on the SURFI master
  taxonomy, with notification of the related
  templates
• Data aggregation and intra-instance controls will
  be immediately processed
• Other control reports will be processed by night
  batch
• Use of external taxonomies will be possible (
  eg COREP HOST)
• Small credit firms will be able to type their
  data into specific internet pages (instead of
  sending an XBRL file)
• The retrieval of COFINRP data must be done

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• Thank you for your attention !