Frizt Witt - track 4 - 19th XBRL Conference Paris

Track: 4
Title: Innovations in the credit chain
Speaker: Fritz Witt – June 25th 2009


Speech on behalf of Datev and URA Rating Agency®
The URA Rating Agency is convinced that the accountant will be the most important
player within the rating industry in the near future. Because only an independent and
neutral intermediary such as an accountant is able to deliver the quality of the data
that banks and CAI’s (credit assessment institutions) need to produce a reliable
rating within a transparent rating process.


Business
Operations

Processes

XBRL

Participants

Internal
Financial
Reporting

XBRL

External
Financial
Reporting

Investment
Lending,
Regulation

XBRL

XBRL

Financial
Publishers
and CAI’s

Companies

Trading
Partners

Management
Accountants

Software Vendors

Auditors

Regulators

Economic
Policymaking

Banks

Central
Banks


Source DNB

4


The influence of Basel II on companies
Banks
PR internal
external

Credit conditions
Marketing
purposes

Asset
management

Capital
market

Participations
intangible assets
working capital
Risk and

performance
management

Access capital market
and private equity

Company

Purchasing

Information
Insurance

Supplier ratings
Buyers cooperative
Credit scoring

Suppliers

Management

Buyers


Client

Value chain
Value chain
Value chain

Bank

Client

Accountant

Bank

Client

Accountant

Bank

Client

Accountant

Intermediary

Bank


Intermediary or
accountant

Mediation:

Alternatives:

• Other kind of loan

•Grants

• Other bank

•Private Equity

• Risk PD / LGD
• Monitoring
• Credit advice

Credit applications
against lowest costs
integrated with the
front offices of the
banks (term sheets
execution etc.)

Bank

• Mezzanine


Value chain

Client

Accountan

assessed XBRL reports
unassessed XBRL raports

t

URA
Rating
factory

Financial
advisor

Bank






Summarizing:

◦ Together with local players Datev /URA is able to reduce
considerable regulatory burden and processing cost.
◦ Improvement of the quality of the data by means of several
assessment techniques like:
 Data level assessments
 Process controlls
 Quality level agreements of the XBRL reports
 Reference ratings according to world class standards

Fritz Witt CRA
E-mail:
Phone: +31 (0)10 - 2489680