Spanish implementation of the New Basel Capital Accord

1. Spanish implementation of the New Basel Capital Accord Víctor Morilla Ángeles Lozano

2. Moving towards XBRL based solutions • 2003: Pilot project to receive information from appraisal companies • 2004: Project for leading and planning the deployment of XBRL at the Bank of Spain2004: Infrastructure for development and deployment of XBRL systems • 2005: System for the submission of public statements • Under development/analysis: • New Basel’s Accord Solvency Information • Central Balance Sheet Data Office questionnaires • Reserved Statements of Financial Entities

3. Analysis Taxonomy Development Testing Project planning • First half of 2007 capital requirements will be sent using XBRL by September 2007. • Analysis will be finished by June 2006 • Spanish COREP taxonomy will be ready by October 2006 Jun 2006 Oct 2006 Sep 2007

4. Project requirements • Providing a safe channel to submit capital requirements statements • Having small impact on current legacy systems • Automatically identifying errors and problems with filings • Providing helper services to facilitate XBRL adoption by credit institutions

5. SIIF Project • System for the submission of public statements working since July 2005: • Taxonomy based on ifrs-gp (es-be-fs) • XBRL documents sent by e-mail • Helper services provided: • XBRL documents validation • XBRL documents visualization • Taxonomy visualization • Converter from old plain text format to XBRL • Spanish COREP implementation will be based on this project

6. XBRL DOCS Validation Activity record Host Plain text • Activity recording • User Reply • Translation to plain text • Activity recording • User Reply • Translation to plain text XBRL Web Services Presentation Validation SIIF Project Architecture EAI Access Channel Interface to storage system • - Deciphering • Authentication • Access control • Activity recording • User Reply • Translation to plain text Helper Services Front-End Fulfilment state DB • Fulfilment state query • Pre-validation • Visualization ISV XBRL Engine

7. What’s new in the COREP project • Complexity of COREP taxonomy and use of dimensions impacts on: • Mapping to storage on host • Validation • Visualization and validation helper services • Plain text to XBRL conversion • More complex checks and formulas applied • New business requirements

8. SIIF DB Mapping layer • One to one mapping from XBRL items to old database cells FinancialLiabilitiesHeldForTradingTotal

9. COREP DB Mapping layer • One to many mapping from combinations of XBRL items and dimension values to old database cells Item: AllPositionsLong Dim1: MaturityLadderApproach

10. Validation and visualization • Current XBRL validation service (not dimension-aware) to be upgraded • Dimensional data to be rendered for business users visualization

11. Complex checks • Operations not supported by calculation linkbase • Arithmetic comparisons • Operations between contexts • Checking for the presence of items if some rules apply • Comments are mandatory in some conditions • Statements of different periodicities • Probably, COREP Spanish taxonomy will use current formula draft to express these complex checks

12. New business requirements • Manual edition • Providing a tool to allow credit institutions that cannot automatically extract information from their systems • Footnotes management • Capital requirements footnotes will contain some comments about data submitted • E-Mail notification • Notifying credit institutions about pending submissions

13. Conclusions • This project will take advantage of infrastructure and experience from previous project • Spanish COREP project is a big chance to learn and take advantage from new and powerful XBRL features • It is an important step towards the deployment of XBRL in Spain

14. Thanks for your attention Time for questions