By Campbell Pryde, President and CEO, XBRL US, and CEO, XBRL US, and John Turner, CEO, XBRL International
This blog is a follow-up to the 2023 post, SBR: Tangible benefits for businesses and regulators. The SBR white paper has been updated to include details about SBR Nexus, a program developed by Dutch banks which is described below.
The three major Dutch banks, ING, ABN Amro, and Rabobank, in collaboration with the government and the corporate sector, created a data exchange platform called SBR Nexus to standardize the transmission of data between property owners and banks in a secure, efficient manner. The program leverages the official SBR taxonomies used for financial reporting to collect digital reports on their customers’ operations.
The banks started with the taxonomy for annual reports that was defined by the government and used by the Business Registrar for data collection. Banks extended the taxonomy to add more granular data points that were needed by the banks but not required in annual reports collected by the Business Registrar. For example, SBR Nexus added concepts to the taxonomy to represent commercial real estate data for evaluation purposes, including appraisal reports, rental lists, and building-specific ESG data. It has expanded into “Know Your Customer (KYC)” from real estate clients. No data was sent from the Business Registrar to the banks but instead the “store once, report many” principle was used. This approach gives businesses that offer reporting applications the opportunity to make consistent software, where all data points are aligned, and ensures that one coherent report is sent to the banks.
SBR Nexus is now incorporating banking confirmations into the program. A company can provide a banking confirmation signed by the client that allows their auditor to request the company bank statements and confirm that a client’s annual report is in line.
For smaller entities reporting in SBR Nexus, portals have been provided that allow data to be entered into the form and submitted. The form is generated directly from the taxonomy so that it’s updated quickly when there is a new taxonomy release.
The data is used both to help make credit decisions and to ensure that the banks have better, more up to date and finer-grained performance information about the companies in their lending portfolios. This, in turn, helps banks in the Netherlands to fine tune their own credit models, improving capital allocation and overall risk management.
