Credit lines⁹ and liquidity facilities provided to retail customers - 5% draw down

1. 123) Credit lines and liquidity facilities provided to retail customers and retail SMEs (as per section 111)‎ will have 5% draw down assumption applied to the undrawn amount of the advised limit whether revocable or not.
   
   Credit lines and liquidity facilities provided to non-financial corporate customers - 10% draw down for committed credit lines and 30% for liquidity facilities
2. 124) Credit lines provided to non-financial corporate customers are assumed to draw down at 10%, liquidity facilities assume 30% draw down. This takes into account the difficulty in replacing these lines from other banks in a market wide stress and the potential actions by corporates to secure cash to ensure no interruption to their business.
   
   Credit lines and liquidity facilities to banks subject to UAE prudential supervision
3. 125) Banks should assume a 40% drawdown of the undrawn portion of these facilities.
   
   Credit lines and liquidity facilities provided to financial corporate customers - 40% draw down for committed credit lines and 100% for liquidity facilities
4. 126) Credit lines provided to other financial institutions receive 40% draw down to reflect the likelihood that they will be drawn upon in a market crisis. Similarly, liquidity facilities are assumed to be 100% fully drawn.
   
   Liquidity facilities provided to all other entities (including embedded in transactions)-100%
5. 127) A liquidity facility is defined by the BCBS as a committed undrawn back up facility put in place expressly for the purpose of refinancing debt of a customer where the customer is unable to obtain funding from the financial markets.

⁹ Credit lines include undrawn portion of overdrafts, credit cards, bill discounting facilities and other commitments to provide credit.