But, more than this, we should explore the possibilities to give greater feed-back to reporting institutions, from which they can derive benefits. 5  Taking advantage of new technologies  The final element that I want to mention today is certainly not the least important. I believe that we should make full use of the possibilities offered by new technologies and tools to collect, transmit, manage and analyse the increasing amounts of data we are faced with. A standard like XBRL can and should play a central role in enhancing information flows. Its great advantage is that it allows for a more precise, reliable and rapid interface between the generators and users of information. But XBRL is not only a tool for transmission of data. Through the development of “taxonomies” or dictionaries of terms, it allows information to be generated and interpreted on a consistent basis. XBRL  4  BIS Review 47/2006  therefore means that financial information from entities can be understood and assimilated in other parts of the world in an accurate and timely manner. In the banking sector, XBRL could be a means of finding a common language for financial information needs. It could thereby facilitate supervisory co-operation and promote a level playing field. It is for these reasons that CEBS has decided to promote the use of XBRL in the two common reporting initiatives that I mentioned earlier in my intervention.
In my view, a greater degree of convergence in the underlying regulation which applies to financial institutions and markets will provide us with an excellent basis for making progress on other aspects. Let me refer to some initiatives that have been taken in this respect. Of course, the first initiative that I must mention is that of International Financial Reporting Standards (IFRS). Given the importance of accounting data as the basis of information flows, the development and application of these standards is providing a valuable opportunity to enhance the efficiency and comparability of information, especially on an international basis. Indeed, with effect from 1 January 2005, all EU listed companies have been required by law to use IFRS for their consolidated financial statements. The significance of this development should not be underestimated. It means that market participants and other interested parties should be able to compare and contrast information relating to companies in different jurisdictions on a like-for-like basis, and thereby make more informed decisions. Common accounting standards increase transparency and comparability for investors, thus promoting greater cross border investment. And let me give you a less direct, but nonetheless important example of a regulatory convergence initiative, from my perspective as Chairman of the Basel Committee on Banking Supervision. As you may well be aware, at the end of the nineties, we embarked on a review of the so-called “Basel Accord”, an agreement reached back in 1988 to determine minimum regulatory capital requirements for international banks.