Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 707

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 707
---
 Board (SRB), pursuant to that set forth in Regulation (EU) 806/2014, also revised in 2019 and replaced by Regulation (EU) 2019/877. Thus, the SRB, after consulting with the competent authorities, including the ECB, shall establish MREL for each bank, taking into account aspects such as the size, funding model, risk profile and potential contagion effect for the financial system. In May 2021, the SRB published the MREL Policy under the Banking Package, which integrates the regulatory changes of the aforesaid resolution framework reform. The new SRB requirements are based on balance sheet data as at December 2021 and set two binding MREL targets: the final MREL target to be binding on 1 January 2024 and an interim target to be met by 1 January 2022. The latter corresponds to an intermediate level that allows for a linear build-upby institutions of their MREL capacity. Therefore, its calibration depends on the institution’s MREL capacity at the time of calibration and its final target. On 10 January 2023, Banco Sabadell received a communication from the Bank of Spain regarding the decision made by the Single Resolution Board (SRB) concerning the minimum requirement for own funds and eligible liabilities (MREL) and the subordination requirement applicable on a consolidated basis. The requirements that must be met as from 1 January 2024 are as follows:

| – | The minimum requirement for own funds and eligible liabilities (MREL) is 22.22% of the total risk exposure amount 
 (TREA) and 6.36% of the leverage ratio exposure (LRE).                                                            |

| – | The subordination requirement is 17.23% of the TREA and 6.36% of the LRE. |

A-571

The decision does not introduce changes on the following intermediate requirements that must be met as from 1 January 2022:

| – | The MREL requirement is 21.05% of the TREA and 6.22% of the LRE. |

| – | The subordination requirement is 14.45% of the TREA and 6.06% of the LRE. |

The capital used by the Institution to meet the combined buffer requirement (CBR), comprising the capital conservation buffer, the systemic risk buffer and the counter-cyclical buffer, will not be eligible to meet its MREL and subordination requirements expressed in