Building of XBRL taxonomies for Bank of Italy supervisory reporting

Italian Guaranteeing Consortia are supervised entities that monthly report to Bank of Italy information on guarantees issued to small and medium enterprises against loans that they receive from banks. However, loan data reported by such entities to the Bank of Italy did not match with data reported to Bank of Italy by the bank themselves. For this reason, the Bank of Italy requested that banks and guaranteeing consortia set up a mechanism that would allow both to report consistent data on loans and guarantees.

The Italian Bankers Association and Assoconfidi, supported by XBRL Italy, started a project in 2009 to draw up a protocol that would enhance the exchange of information on loans and guarantees. The project was the result of a communication by the Italian central bank that invited banks and guaranteeing consortia to share consistent data before submitting them for regulatory reporting purposes.

The information exchange between the parties had to utilize the XBRL standard, the innovative financial reporting languaget hat was gaining momentum worldwide in the field of regulatory reporting and financial data exchange.

Result

After many meetings, discussions, conference calls, data analysis sessions and user acceptance tests, the final XBRL taxonomies for data exchange on loans and guarantees were created so that all entities could report their data to central bank susing a standard transmission language. The system that was implemented also ensured data consistency and provided a terrific tool for credit risk analysis of loans and guarantees portfolios.