XBRL and its uses in a financial
institution such as BBVA
13th XBRL International Conference
May 2006
Contents
1.
Introduction
2.
Scope of XBRL Implementation
I.
Financial Institutions
II. BBVA
3.
Summing Up
13th XBRL International Conference
-2-
May 2006
1. Introduction
OBJECTIVES
• The main objectives to be achieved in this session are:
 Introduction of BBVA.
 New international framework of corporate reporting.
 XBRL creating value in the new framework.
 New opportunities to apply XBRL in Financial
Organizations.
 Keys for success in the development of XBRL initiatives.
13th XBRL International Conference
-3-
May 2006
1. Introduction
BBVA – GENERAL INFORMATION
• First Bank in efficiency in the Eurozone.
• Efficiency Ratio : 45.9% (1Q 2006).
• ROE: 34.1% (1Q 2006).
• 7,410 Offices.
• 94,681 Employees.
• 34 million euros invested in Training.
• Number of Clients: 38.4 million
• 70% Client Satisfaction.
• Developing the XBRL Project (BBVA joins
the Spanish XBRL Association: September 2004).
13th XBRL International Conference
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May 2006
1. Introduction
BBVA – INTERNATIONAL CONTEXT
•
•
•
•
•
• USA (New
York, Miami)
• Mexico
• Cuba
• Puerto Rico
• Panama
• Venezuela
• Colombia
Spain
Portugal
Andorra
France
England
• Belgium
• Switzerland
•Germany
• Italy
• Russia
•
•
•
•
•
•
Peru
Chile
Argentina
Uruguay
Paraguay
Brazil
• Japan
• China (Pekin,
Shangai, Hong
Kong)
• Iran
13th XBRL International Conference
-5-
May 2006
1. Introduction
EVOLUTION OF DEMAND FOR INFORMATION
• Stakeholders’ demand for more information has been evident in the
last few years and has been caused mainly by:
Outstanding Global Events
Changes in
Legislation
Change of Information
Management Model
13th XBRL International Conference
-6-
May 2006
1. Introduction
NEW CORPORATE REPORTING REQUIREMENTS
• The information requested by
the “stakeholders” involves new
reporting requirements:
 Transparency
 Accuracy
 Homogeneity
 Increased availability
 Efficiency
 Itemization
 Comparison among competitors
 Support for decision-making
13th XBRL International Conference
-7-
May 2006
1. Introduction
GREAT NUMBER OF INFORMATION SENT
Global Scope (International)
Regulatory Organizations
Associations- Other External Agents
International
Stock Market
Local Scope (National/International)
Regulatory Organizations
National
Stock Market
Associations- Other External Agents
Financial
Credit
Statistical
Others
SelfGoverment
Communities
External
Audit
City Councils
Consulates
13th XBRL International Conference
-8-
May 2006
1. Introduction
MAIN REPORTING COMPONENTS
Accounting
•
•
•
•
Contract/Operations
At any Organization level
Daily
Extended accounting scheme
Management mechanism (transfer
rates, synergies.)
• Operating Level
• Daily, monthly
• Movements, positions, attributes,
future flows…
Reporting
Asset Risk and Expected
Return
Customers
•
•
•
•
• Segmentation
• Conditions
• Statistical data
Operating Level
Financial Capital
Expected Losses
Exposure
13th XBRL International Conference
-9-
May 2006
1. Introduction
CONTENT OF INFORMATION OUTPUTS
• The kind of information periodically delivered to Regulators can be
classified in:
INFORMATIVE
STATISTICAL
 Balance
 P&L
 Relevant facts
 INE
 Regional Communities
 Non Residents Operations - PNR
LEGAL
MANAGEMENT
 Signed Annual Report
 Companies House Reports
 Normalized files
 External audit
BANKING OPERATION
TAX
 CIRBE
 ASNEF
 IVA, IRPF e IS Tax models.
13th XBRL International Conference
- 10 -
May 2006
1. Introduction
DEFICIENCIES IN CORPORATE REPORTING
• The main corporate reporting inefficiencies noticed in financial
entities, due to the new information management environment:
Information Retrieval.
1 Item – N Requests – N Sources
Information Validation.
Validation of heavy processes
Working, Analysis.
N Presentation Formats
Publication.
Same information in N presentation
formats to N Organizations.
13th XBRL International Conference
- 11 -
May 2006
1. Introduction
XBRL CONTRIBUTION IN VIEW OF NEW REQUIREMENTS
• Due
to
the
new
management
and
information
reporting
environment:
Integrity
Quality
Optimal Working
Reduction of publication cycles
Standardization
13th XBRL International Conference
- 12 -
May 2006
Contents
1.
Introduction
2.
Scope of XBRL Implementation
I.
Financial Institutions
II. BBVA
3.
Summing Up
13th XBRL International Conference
- 13 -
May 2006
2. Scope of XBRL Applications – Financial Entities
XBRL AND FINANCIAL ENTITIES
Clients
Financial /
Market
Analysts
Financial
Organizations
Vendors
Investors
Financial
Entity
Local /
International
Regulators
Software and
Technology
Vendors
Information
Administrators
13th XBRL International Conference
- 14 -
May 2006
2. Scope of XBRL Applications – Financial Entities
VARIETY OF FINANCIAL INFORMATION INTERCHANGE PROCESSES
Administrative Information
Retrieval Processes
Reporting to Official
Organizations
Retrieval of Market
Information
International Client
Management
Risk Management and
Analysis
Information publication
Competitors, Industry, Capital
Markets and Subsidiary Analysis
Processes
Control Processes and Internal Audit
13th XBRL International Conference
- 15 -
May 2006
Contents
1.
Introduction
2.
Scope of XBRL Implementation
I.
Financial Institutions
II. BBVA
3.
Summing Up
13th XBRL International Conference
- 16 -
May 2006
2. Scope of XBRL Applications - BBVA
XBRL INITIATIVES LAUNCHED IN BBVA
SIIF Project – Bank of Spain
CNMV Project - IPP
Retrieval of Market
Information
COREP (*)
Financial information
delivery to SEC (*)
Risk Analysis and
Management
Release in BBVA Web (*)
Competitor Analysis
Capital Market Analysis
Industry Analysis
(*) In Process
13th XBRL International Conference
- 17 -
May 2006
2. Scope of XBRL Applications - BBVA
COREP - XBRL
Internal Working
Sources
Calculation Engine Consolidation
Standard
Internal Basic
XBRL
BBVA
Taxonomy
Internal
Advanced
Consolidated
Ratings,
Scorings
Information
Operational
Risk
Standard
XBRL
Repository
Clients’
Condition
XBRL
Framework
Contract
Guarantees
COREP
13th XBRL International Conference
- 18 -
May 2006
2. Scope of XBRL Applications - BBVA
BBVA ORGANIZATION
• A XBRL Project Office has been created in order to manage and
promote internal and external XBRL initiatives to develop in BBVA.
External
Agents
Regulators
Suppliers
BBVA Areas
XBRL Project Office
Technology
Negotiator between
agents
Taxonomy Experts
Reporting BBVA
Systems
Data Dictionary
XBRL – BBVA
Knowledge
User
Departments
XBRL Internal/External Initiatives
- SIIF Project
- CNMV Project
- Capital Laundering
- COREP
- Others
13th XBRL International Conference
- 19 -
May 2006
Contents
1.
Introduction
2.
Scope of XBRL Implementation
I.
Financial Institutions
II. BBVA
3.
Summing Up
13th XBRL International Conference
- 20 -
May 2006
3. Summing Up
XBRL INITIATIVES – KEYS OF SUCCESS
• To achieve success, XBRL initiatives require a mix of the
following factors:
 Publication of more information in XBRL.
 Development of new XBRL tool functionalities in
order to manage XBRL information.
 Joint performance between Public Administration
and the Private Sector.
 More
specifically,
in
the
scope
of
financial
Current
Situation
organizations, the joint performance of all the
participants in the financial system would become
necessary to launch new XBRL initiatives.
Keys for
Success
t
13th XBRL International Conference
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May 2006
3. Summing Up
CONCLUSIONS
• XBRL is creating value in financial organizations, firstly
focused on external reporting and, afterwards, on the
internal one.
• Nowadays, there are few organizations working in XBRL
projects. The main initiatives are the result of Regulators
demands.
• The commitment of market agents is required for the
success and consolidation of XBRL.
13th XBRL International Conference
- 22 -
May 2006
13th XBRL International Conference
- 23 -
May 2006
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