Track 4

1. 19th XBRL International Conference“Reducing regulatory burden with XBRL: a catalyst for better reporting”June 22-25, 2009Paris, France Track 4 Title: How XBRL Facilitates the Electronic Collection of Financial Information for Credit Risk Rating, Name: Igno J. Dekker, Business Architect, ABN AMRO Bank, The Netherlands. Date: Thursday, June 25. 11.00 – 12.30

2. Index • Flash back • Observations • Developments in banking sector • (Dis)Advantages Banking Taxonomy • Agreement Government and banks

3. Flash back • Goal SBR NL: reducing administrative burden • - by semantic and technical standardization • - and ensure the connection between the taxonomy and the law • In 2007 the Dutch taxonomy was available: mission completed! • - number of data elements dropped from more than 200.000  12.000 • - in practice the taxonomy was used by professionals for interpreting law • and regulations, and accounting practices • - advantages of the Dutch taxonomy were and are beyond doubt • - there was and is a growing interest in the concept • - banks did not participate until October 2007 • … but…

4. Observations • “What in it for me?“ • Organisational problems • Is there a political and corporate need? • Ultimately, it comes down to moderating the chain

5. Developments in banking sector • Fulfil Basel II requirements • 1. Program lending vs. Non-program lending • 2. Automated creditscoring based on bankspecific models • Increase data quality: standardization and prevent data entry mistakes by electronically exchange of annual account information • Investigate the possibility of an online, realtime end-to-end credit process for program lending products • The need to get more credit specific information from the annual account data

7. Bank extension on Dutch Taxonomy • In close cooperation between two banks, two financial intermediaries • and the SBR operational office, the data elements for the credit process • of Program Lending products are specified and defined • Starting point was: the Dutch Taxonomy on tax basis, built in 2007 • Bank extension means that the data required for the credit process are standardized for the credit lines until € 1 mln.

8. SBR: three interconnected layers

9. Examples of detail information • The Dutch Tax Administration is interested in the total amount of fixed assets. • The banks are interested in the tax and market value of the individual objects • The tax administration needs the total amounts of debtors and creditors. The banks are interested in the next specification: • Specify number/ • amount Debtors • & Creditors 0 – 30 days 30 – 60 days 60 – 90 days > 90 days

10. Advantages business entity • Data exchange to different parties (Tax Administration, Chamber of Commerce, • Statistics Office) from one administration point • Taxonomy connected to accounting software. Data can be generated • automatically. • Apply for credit can be answered online, real-time in the near future • Apply for credit via internet channel Disadvantage • Bank extension needs additional data on top of tax administration

11. Advantages financial intermediary • No difference between commercial and fiscal annual account • Paper output will be replaced by electronical output • Validation of in between information means additional work • More attention for benchmarking Disadvantage • Decreasing efforts of accountant by standardization

12. Advantages Bank • One valuation standard • One point of data generation • No manual data entry • Higher frequency of data exchange. Improvement credit control • Increasing quality of data and credit risk models Disadvantage • It becomes much easier to apply for more than one quotation

13. Agreement Government and Banks • Major problem: • Dutch Taxonomy and bank extension are defined, but • how can both parties mobilize/”bootstrap” the market • Solution: • Joint efforts of Government and banks to stimulate the use of the • Dutch taxonomy included the bank extension. • Agreement signed on June.9th 2009