Irrevocable Commitments - Certain Drawdown-Loans Approved but not yet Advanced
Where the non-market-related off-balance sheet transaction is an undrawn or partially undrawn facility, the ADI is to include the maximum unused portion of the commitment that could be drawn during the remaining period to maturity for the calculation of the CEA. Any drawn portion of a commitment forms part of an ADI's on-balance sheet credit exposure.

Undrawn balances of revolving facilities (e.g. credit cards, overdrafts) are to be reported in the item 'Commitments that can be unconditionally cancelled at any time without notice.'

All commitments are to be included in the capital calculation regardless of whether or not they contain 'material adverse change' clauses or any other provisions that are intended to relieve an ADI of its obligations under certain conditions.

Loans approved but not advanced/funded
Commitments, for capital adequacy purposes, are generally considered to have arised once the reporting party makes a firm offer to a client (i.e. customer acceptance is not required). Therefore, a commitment will arise once a letter of offer is provided to the client by the reporting party.