1

XBRL Pilot Project at BOJ

May 2004

　 Yoshiaki Wada　 Bank Examination and Surveillance Department

Bank of Japan

© 2004 Bank of Japan

2

1 ． The role of the BOJ and the importance of Information Infrastructure within Financial Systems

• Range of FSIs covered by BOJ on-site Examination and off-site Monitoring

© 2004 Bank of Japan

• Positioning of the BOJ in the financial information supply chain

• The BOJ way to provide and receive different types of information and apply them to FSI supervision

3

Range of FSIs covered by BOJ on-site Examination and off-site Monitoring

© 2004 Bank of Japan

about 560 FSIs (end of March 2004)

Major Banks

Regional Banks

Shinkin Banks

Foreign Banks

Securities Firm etc.

4

BOJBOJBOJBOJ FSAFSATax officeTax office

TokyoStock Exchange

TokyoStock Exchange

Accountant’soffice

Accountant’soffice

Informationvendor

Think tankCredit risk

information DB

Informationvendor

Think tankCredit risk

information DB

RatingAgency

RatingAgency

Audit corporation, etc. Company Stock market, Investors, etc.

TaxpayerTaxpayer

CreditGuarantee

Corporation

CreditGuarantee

Corporation

Other FSIsOther FSIs

InvestorInvestor

Credit guarantee

Security liquidity

Announcement of financial statements/IR

Loan SyndicationBorrower

Positioning of the BOJ in the financial information supply chain

FirmsFirms

Risk

management

Accounting

© 2004 Bank of Japan

BankBank

Reports

5

The BOJ way to provide and receive different types of information and apply them to FSI supervision

© 2004 Bank of Japan

Applicability of XBRL

BOJBOJ

FSIFSI

CorporationCorporation

BOJ net

Reporting systems, incl. VPN online data gathering system

Ho

st syste

mP

C system

File format conversion

Character code conversion

DBs

original format

Individuals

Files

Papers

Host computerFile format conversionCharacter code

conversionKey entry

Character code conversion

PC

Accounting table creation

File creation

　 StorageIntranet

Application to FSI supervision

(data format for printing)

Vertical andhorizontal position and

data specification

Financial DB

Text format

Excel, Word, Text, CSV, XML Paper-based

Publication of a variety of statistics

6

2 ． Understanding the pilot project

•Project overview

•Project history

•Project flow

© 2004 Bank of Japan

7

Project overview 　

Purpose　　　　　

　　

　　　

© 2004 Bank of Japan

・ Promote understanding of XBRL within the FSIs

・ 4 banks that had already joined XBRL-Japan (as of November, 30 2003)

　　　　 Tokyo-Mitsubishi, Sumitomo-Mitsui, UFJ and Mizuho

　・ Accounting tables for monthly balances

・ Data transfer between the BOJ and FSIs. In addition, a study on the applicability to other FSI businesses.

　 Participants

　 Target reports

　 Scope and timing of the test

・ Verify both the technical and operational usefulness of XBRL

・ Started in December 2003 and finished in March 2004.

8

Project history

© 2004 Bank of Japan

Preparation for the test

InvestigationHearing

Taxonomycreation

Functional development Tool

evaluation

Join XBRL -Japan

Validity test

Briefing toexecutives

Formula linkcreation

Session with participated FSIs Phase 1 of

the project

June, 2003 　　　 July – Sept. 　　 Oct. 　　 Nov. – Dec. 　　　　 January, 2004 　　　　　　　 March 　　 After April

Test evaluation

Phase 2 of

the project

Request for cooperation

9

Project flow

FSI BOJBOJ

②Presentation of taxonomy, technical documents, etc.

③Taxonomy verification　 Promote

understanding of technical information

①Creation of taxonomy, etc. Technical study

④Report file creation

in XBRL format

⑥File recreation/ verification

⑦Evaluation/feed back⑤Sends report file

ReportsA

ReportReport

ReportA

ReportB

ReportC

ReportA

ReportB

ReportC

© 2004 Bank of Japan

Ordinary profitsCurrent profits

K160000 K160001

… …

Element name

Item name

10

3 ． Test summary

•Test results

•Further application possibilities

•Interim evaluation

© 2004 Bank of Japan

11

Test results

© 2004 Bank of Japan

Optional menu

Building of taxonomy and Formula Link by the BOJ

Creation of XBRL instance documents by participating banks

Restoration of XBRL instance documents by the BOJ

- Confirmed compatibility of the taxonomy with different tools and validity of the Formula Link

- Satisfactory data import from Excel files into instance documents

- Confirmed reproducibility of data from instance documents

- Some participants partial ｌ y edited the taxonomy

12

Further application possibilities

© 2004 Bank of Japan

Improved IR quality

Faster loan assessments

Reuse of business data for credit guarantees and loan syndications

Integration of various data systems within a bank

Build up of a sophisticated credit risk evaluation system

13

Interim evaluation

XBRL

Effectiveness of Formula Link

Importance of the installation environment

Importance of the tools forverification and analysis

Necessity for BPR to exploit XBRL ‘s merits

Phase 1 of the projectPhase 1 of the project

Study of the database structure that fits the business purpose

Interface with legacy systems

Affinity between XBRL tools and user PCs (e.g., version of OS)

High requirement for end user analysis

© 2004 Bank of Japan

Formula Link

Need for advanced technology

Mapping Link, Versioning Link

14

And now for the last word ---

© 2004 Bank of Japan

15

Thank you for listening.

© 2004 Bank of Japan