Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 498

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 498
---
 The Group will take any measures necessary to match the concentration risk to the levels approved in the RAS by the Board of Directors. Exposure to customers or significant risks As at 31 December 2023 and 2022, there were no borrowers with an approved lending transaction that individually exceeded 10% of the Group’s own funds. A-315

Country risk: geographical exposure to credit risk Country risk is defined as the risk associated with a country’s debts, taken as a whole, due to factors inherent to the sovereignty and the economic situation of a country, i.e. for circumstances other than regular credit risk. It manifests itself in the eventual inability of obligors to honour their foreign currency payment obligations undertaken with external creditors due to, among other reasons, the country preventing access to that foreign currency, the inability to transfer it, or the non-enforceabilityof legal actions against borrowers for reasons of sovereignty, war, expropriation or nationalisation. Country risk not only affects debts undertaken with a state or entities guaranteed by it, but also all private debtors that belong to that state and who, for reasons outside their control and not at their volition, are generally unable to satisfy their debts. An exposure limit is set for each country which is applicable across the whole of Banco Sabadell Group. These limits are approved by the Board of Directors and the corresponding decision-making bodies, as per their conferred powers, and they are continuously monitored to ensure that any deterioration in the economic, political or social prospects of a country can be detected in good time. The main component of the procedure for the acceptance of country risk and financial institution risk is the structure of limits for different metrics. This structure is used to monitor the various risks and it is also used by Senior Management and the delegated bodies to establish the Group’s risk appetite. Different indicators and tools are used to manage country risk: credit ratings, credit default swaps, macroeconomic indicators, etc. Schedule IV includes quantitative data relating to the breakdown of the concentration of risks by activity and on a global scale. Exposure to sovereign risk and exposure to the construction and real estate development sector Schedule IV includes quantitative data relating to sovereign risk exposures and exposures to the construction and real estate development sector. 4.4.2.7. Counterparty credit risk This heading considers credit risk associated with activities in financial markets involving specific transactions that have an associated counterparty credit risk. Counterparty credit risk is a type of credit risk that refers to the risk of a counterparty defaulting before definitively settling cash flows of