For the purposes of paragraphs (2)(b)(ii) and (3)(b)(i) of Annex I of Regulation (EU) No 575/2013 (CRR) the relevant original maturity is the period that starts when the credit facility has been granted and during which the undrawn credit facility could be drawn and become a drawn credit facility. The classification of the items remains unchanged until the expiration of the offer or the date when the off-balance sheet item becomes a drawn credit facility.

In the example of a 90 day offering period for a 10 year loan, the facility can be drawn only during a period of 90 days, which is not more than one year, thus the off-balance sheet item is to be classified as medium/low risk according to paragraph (3)(b)(i) of Annex I CRR.

However this application of the term “original maturity” does not constrain the maturities relevant for other purposes, such as for determining risk weights (e.g. for the risk weight according to Article 121(3) CRR for exposures to unrated institutions with an original effective maturity of three months or less) or for the recognition of credit risk mitigation (for which Article 238(1) CRR determines the effective maturity of the underlying as the longest possible remaining time before the obligor is scheduled to fulfil its obligations, subject to a maximum of five years).