Credit Card Facility — Limit Approval (Off-Balance-Sheet)
Approving and recording an undrawn credit card limit as an off-balance-sheet commitment.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Undrawn Credit Card Commitments (Memo/OBS) | Off-B/S Debit (+) | 5,000.00 | - |
| Customer Credit Card Obligation (Contra Memo) | Off-B/S Credit (+) | - | 5,000.00 |
💡 Accountant's Note
An approved but undrawn credit card limit is an off-balance-sheet contingent exposure. For ECL under IFRS 9, undrawn credit card limits require an ECL provision calculated on the 12-month expected drawdown multiplied by PD and LGD.
Practitioner & Systems Framework
💻 ERP Architecture
Credit card limits are managed in the Card Management System (CMS), not the core banking system. The off-balance-sheet exposure must be extracted from CMS and included in the IFRS 9 ECL model. CBJ capital adequacy rules apply a 20% credit conversion factor to undrawn revolving retail commitments.
⚠️ Audit Flags
Auditors check that undrawn credit card limits are included in the ECL model. A common omission is excluding card limits from the IFRS 9 provision calculation, which understates the provision. CBJ inspectors test whether the approved limits comply with the income/salary-based limits in the bank's credit policy.
📄 Required Documentation
Credit card application, credit approval, card issuance confirmation, credit limit system record, and inclusion in ECL model data extract.
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Expert Analysis by Qusai Ahmad
General Accountant Supervisor & IFRS Specialist
Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.