Lessons learned implementing XBRL in the Bank of Spain€¦ · LESSONS LEARNED: BUSINESS ORIENTATION TO PROVIDE THEM AUTONOMY 10 Our ultimate purpose is to provide better solutions

Information Systems

Lessons learned implementing XBRL in the Bank of Spain

Maite Sainz

Head of the Management Systems Division II, Bank of Spain

XBRL Week

Madrid 2015

INFORMATION SYSTEMS2

10 YEARS OF XBRL IN BANK OF SPAIN

AppraisalCompanies

(COREP extension)

SolvencyInformation

(COREP extension)

(FINREP extension)

SectorialStatements

(FINREP extension)

Taxonomy development

2004

Public Statements(IFRS)

2006 2008 20092007 2010 20112005 2012 2013 2014 2015 2016

IAC.01 Mutual guaranteeExchange offices

Remuneration statements

Protection of mortgage

debtors

of Practice guidelines Statistics Code

of Practice guidelines

EBACOREP

EBAFINREP

EBAAE, SBP, …

FINREPSOLO

INFORMATION SYSTEMS3

10 YEARS OF XBRL IN BANK OF SPAIN

AppraisalCompanies

(COREP extension)

SolvencyInformation

(COREP extension)

(FINREP extension)

SectorialStatements

(FINREP extension)

Taxonomy development

2004

Public Statements(IFRS)

2006 2008 20092007 2010 20112005 2012 2013 2014 2015 2016

IAC.01 Mutual guaranteeExchange offices

Remuneration statements

Protection of mortgage

debtors

of Practice guidelines Statistics Code

of Practice guidelines

EBACOREP

EBAFINREP

EBAAE, SBP, …

XBRL Standards / practices evolution

XBRL 2.1

XBRLDimensions

XBRLFormulae

TableLinkbase

DPMMethodology

EnumerationsExtensible

Enumerations

Multi instanceMulti-instancevalidation

FINREPSOLO

INFORMATION SYSTEMS4

10 YEARS OF XBRL IN BANK OF SPAIN

AppraisalCompanies

(COREP extension)

SolvencyInformation

(COREP extension)

(FINREP extension)

SectorialStatements

(FINREP extension)

Taxonomy development

2004

Public Statements(IFRS)

2006 2008 20092007 2010 20112005 2012 2013 2014 2015 2016

IAC.01 Mutual guaranteeExchange offices

Remuneration statements

Protection of mortgage

debtors

of Practice guidelines Statistics Code

of Practice guidelines

EBACOREP

EBAFINREP

EBAAE, SBP, …

XBRL Standards / practices evolution

XBRL 2.1

XBRLDimensions

XBRLFormulae

TableLinkbase

DPMMethodology

EnumerationsExtensible

Enumerations

Multi instanceMulti-instancevalidation

FINREPSOLODPM Architect

Remuneration statements

XBRLPrototype

Basic XBRLInfrastructure

System forPublic Statements

XBRL Formulaintegration

Taxonomyviewer

XBRLForms

Metadata oriented version of the system

Legacy SystemMigration

+ MI Validation

Application / infrastructure

INFORMATION SYSTEMS

CHANGES IN THE LANDSCAPE OF EUROPEAN SUPERVISION

EBA

ITSs

SSM

XBRL

DPM

5

- Important Institutional and organization changes:

- CEBS- EBA- SSM

- XBRL’s been just a small piece leveraging this changing process

- But changes produce resistance…

INFORMATION SYSTEMS

LESSONS LEARNED: IMPORTANCE OF PROPER COMMUNICATION PLANS

6

Key in any process of change

A good understanding of the process will produce benefits very soon

-What?

-When?

-Why?

Consider a wide audience:

-Credit institutions

-Providers and the software industry

-Your team!

INFORMATION SYSTEMS

LESSONS LEARNED: THE QUALITY OF THE TAXONOMY KEY

7

Credit institutions

Supervisor

Highquality data

The purpose of reporting processes is to collect data:- Accurate- High quality- Traceable (avoiding manual intervention)

INFORMATION SYSTEMS

LESSONS LEARNED: THE QUALITY OF THE TAXONOMY KEY

8

Credit institutions

Supervisor

Clear communication of reporting

requirements

To obtain accurate data:- Reporting requirements must be clearly defined- Financial concepts must have an unambiguous definition- The definition of quality controls is an effective mechanism

to identify problems in the exchange of data

Focus in increase efforts in XBRL validations:- Credit institutions can make data validation in origin- The definition of quality controls is an effective mechanism

to identify problems in the exchange of data- The analysis-correction time is reduced- Mind error messages!

This is the purpose of XBRL taxonomies and the DPM approach- Don’t spare efforts in the development of the taxonomy- High quality taxonomies produce high quality data- Mistakes in taxonomies or lack of stability in design criteria

have a high cost in the reporting process

INFORMATION SYSTEMS

LESSON LEARNED: YOU CANNOT DO IT ALONE

9

By using standards we benefit from the efforts of a whole community…

Collaboration with public institutions and

organizations

• EBA

• ECB

• IFRS Foundation

• XBRL International

• Eurofiling community

• XBRL Europe

• XBRL Spain….

XBRL Specs tailored to European

Supervisors needs

• Dimensions

• Formulae

• Table Linkbase

• Extensible Enumerations

• …

Many solutions available in the market

• Software companies

• Consultants

• Training

• …

INFORMATION SYSTEMS

LESSONS LEARNED: BUSINESS ORIENTATION TO PROVIDE THEM AUTONOMY

10

Our ultimate purpose is to provide better solutions- To make our business processes more efficient- To improve the quality of data in supervision flows- To reduce costs (both in our institutions and the banking industry)- To give autonomy to our business users

Don’t get lost in a quest for technical excellence:- Think first of the benefit to end users- Perfect is the enemy of good- Early delivery of simple and small solutions is more effective- Empathy with the end users is important to understand their needs

Business orientation… but also business involvement!- Early and continuous business implication- XBRL internals is IT stuff, but business users must lead the

construction of a unified financial vocabulary

Information Systems

THANKS FOR YOUR ATTENTION

Maite Sáinz