Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 327

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 327
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 – | Decentralised liquidity management system for the more significant units but with a centralised risk oversight and 
 management system.                                                                                                 |

| – | Sound processes for the identification, measurement, management, control and disclosure of the different liquidity 
 subrisks to which the Group is exposed.                                                                            |

| – | Holistic overview of risk, through first- and second-tier risk taxonomies, and complying with regulatory 
 requirements, recommendations and guidelines.                                                            |

| – | Existence of a transfer pricing system to transfer the cost of funding. |

| – | Balanced funding structure with a predominance of customer deposits. |

| – | Ample base of unencumbered liquid assets that can be used immediately to generate liquidity and which comprise the 
 Group’s first line of liquidity.                                                                                   |

| – | Diversification of funding sources, with controlled use of short-term wholesale funding without having to depend on 
 individual fund suppliers.                                                                                          |

| – | Self-funding by the main banking subsidiaries outside Spain. |

| – | Oversight of the balance sheet volume being used as collateral in funding operations. |

| – | Maintenance of a second line of liquidity that includes the capacity to issue covered bonds. |

| – | Alignment with the interests of stakeholders through regular public disclosure of liquidity risk information. |

| – | Availability of a Liquidity Contingency Plan. |

Tools/metrics for monitoring and controlling liquidity risk management Banco Sabadell Group has a system of metrics and thresholds which are provided in the RAS and which define the appetite for liquidity risk, previously approved by the Board of Directors. This system enables liquidity risk to be assessed and monitored, ensuring the achievement of strategic objectives, adherence to A-94

the risk profile, as well as compliance with regulations and supervisory guidelines. Within the Group-level monitoring of liquidity metrics, there are metrics established at the Group level and calculated on a consolidated basis, metrics established at the Group level and rolled out to each Group LMU, as well as metrics established at the LMU level to reflect specific local characteristics. Both the metrics defined in the Banco Sabadell Group RAS and those defined in the local RAS of subsidiaries are subject to governance arrangements relating to the approval, monitoring and reporting of threshold breaches, as well as remediation plans established in the RAF on the basis of the hierarchical level of each metric (these are classified into three tiers). It should be mentioned that the Group has designed and implemented a system of Early Warning Indicators (EWIs) at the LM