**Federal Deposit Insurance Corporation**

**Office of the Comptroller of the Currency**

#  Board of Governors of the Federal Reserve System

> August 31, 2004

FFIEC's Call Report Modernization Project

Overview of Call Report Modernization Project

Presented by: Martin Henning, FDIC, CDR Project Manager; Cindy Ayouch,
FRB, Chair, Financial Institutions Focus Group; and Gary Irving, Unisys,
Deputy Program Manager.

Call Report Modernization Project Goals

-   Update the process by which Call Report data are defined, managed
    and used

-   Gain industry-wide efficiencies in the exchange of financial data by
    using the Internet and XML-based standards

-   Create an extensible platform for current and future reporting needs

Call Report Modernization Project

-   FFIEC Call Agencies

    -   FDIC, FRB and OCC

-   Contract awarded to Unisys Team 5/03

    -   Partners: PWC, Microsoft, UBMatrix, Edgar Online, IDOM, V-Tech
        Solutions

    -   Dave Hoffman and Raj Tewari, Unisys Partners

    -   Cecilia Wu, Unisys Program Manager

-   System development will take about a year

-   Operational launch is anticipated for one of the first two Call
    Report periods of 2005. A specific date will be announced by the end
    of the year.

What is Changing?

-   Moving from agency-focused to industry-focused for the long view

-   Shifting from form-centric to data-centric

-   Shifting from proprietary standards to open standards

-   Reducing redundancies among agencies using centralized facility

What are the Business Issues?

-   Decrease the time between the receipt of data and the release of
    data to the public

-   Decrease the cost of data collection for all parties

-   Improve data transparency through defined open standards

-   Create a flexible system that can accommodate evolving business
    needs

-   Provide best information and tools to help financial institutions
    meet their obligations for submitting timely and accurate reports

Why XBRL for Call Reports?

-   Provides foundation data for bank supervision and industry analysis

-   Data structures are well-documented

    -   More than 8,300 institutions report quarterly

    -   Currently collect 2,000 data fields

    -   Nearly 400 pages of instructions

    -   1,500 edit formulas to promote data quality

-   Promotes effective data exchanges across legacy systems without
    significant re-programming

Major Business Model Changes - Agencies

-   What's New

    -   Centralized data storage and processing facility

        -   Shared costs and management

        -   Meta-data published in XBRL format

        -   Historical data available for banks and vendors

        -   Expedited data publication

-   What's the Same

    -   Timely and accurate Call Report requirements

    -   Customer service for requirements; exceptions and accounting
        rules

Major Business Model Changes - Banks

-   What's New

    -   Elimination of paper-based meta-data materials (forms,
        instructions, validation criteria)

    -   Pre-validation of data required

        -   Math and logic errors eliminated before processing

        -   Quality edit variances require explanation

    -   Internet delivery of data to CDR

    -   More responsibility for amended data

-   What's the Same

    -   Ultimate responsibility for data

    -   Relationship with software providers

    -   Little or no impact on legacy systems

Major Business Model Changes - Vendors

-   What's New

    -   Meta-data management process centralized

    -   XBRL inputs and outputs

    -   Support pre-validation requirement

    -   Support reporter authentication, authorization and file format

    -   Historical data available for edits

    -   Potential for cost savings over time (ease of update,
        reusability)

-   What's the Same

    -   Continue to provide software and services

    -   Ability to leverage processes and services to customers

Expected Results

-   Faster exchange of data between banks and FFIEC Call Agencies

-   Resources shared more effectively among FFIEC Call Agencies

-   Easier accommodation of Call Report changes

-   Long-term potential to facilitate bankers' reuse of data among
    multiple regulatory and internal reporting needs

-   Provides structure for automating straight-through processing

Benefits for Bankers and Vendors

-   XBRL can help lower long-term costs

    -   Improved data quality and timeliness

    -   Vendor products easier to maintain and leverage

-   XBRL frameworks are extensible

    -   Developing additional frameworks can be simplified when data
        requirements are shared

-   Many institutions report similar data to federal, state and local
    governments

    -   Consolidate efforts in the future

Focus Groups

-   Facilitates communication and coordination with major stakeholders.

-   Four major Focus Groups:

    -   XBRL Standards Group

    -   Technology Forecasting Group

    -   Call Report Software Vendors Focus Group

    -   Financial Institutions Focus Group

Bank Participation in the CDR Project

-   Financial Institutions Focus Group (FIFG)

    -   Current membership

    -   Purpose

    -   Responsibilities

FIFG Current Membership

-   FFIEC, Cindy Ayouch

-   Unisys, Gary Irving, Dave Hoffman, Shaune Gokey

-   Six Financial Institutions of Various Sizes

-   Federal Reserve Banks

-   American Bankers Association

-   Independent Community Bankers of America

-   Association for Financial Technology

-   America's Community Banker

-   New York Clearinghouse

-   Conference of State Bank Supervisors

FIFG Purpose

-   Serve as a collaborative bridge between the CDR Project and the
    Financial Institution Community

-   Support two-way communication about the project

-   Identify potential problems early

FIFG Responsibilities

-   Collaborate 2-3 hours per week

-   Actively participate in meetings

-   Assist with message development and delivery