Company: BBVXF
Filing Date: 2025-02-27
Form Type: F-4/A
Source: 0001193125-25-037317
Chunk: 514

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-02-27
Form: F-4/A
Chunk 514
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ised cost                               |     |                  | 232,529,932 |   |     |                  |         — |     |       | 232,529,932 |   |     |                            | Interest rate                |
| Other liabilities                                                     |     |                  |   1,743,328 |   |     |                  |         — |     |       |   1,743,328 |   |     |                            | —                            |
| Equity                                                                |     |                  |  13,086,116 |   |     |                  |         — |     |       |  13,086,116 |   |     |                            |                              |

A-329

The market risk acceptance, management and oversight system is based on managing positions expressly assigned to different trading desks and establishing limits for each one, in such a way that the different trading desks have the obligation to always manage their positions within the limits established by the Board of Directors and the Investments and Liquidity Committee. Market risk limits are aligned with the Group’s targets and risk appetite framework. Trading activity The main market risk factors considered by the Group in its trading activity are the following:

| – | Interest rate risk: risk associated with the possibility of interest rate fluctuations adversely affecting the value                                 
 of a financial instrument. This is reflected, for example, in transactions involving interbank deposits, fixed income and interest rate derivatives. |

| – | Credit spread risk: this risk arises from fluctuations in the credit spreads at which instruments are quoted with              
 respect to other benchmark instruments, such as interbank interest rates. This risk occurs mainly in fixed-income instruments. |

| – | Foreign exchange risk: risk associated with the fluctuation of exchange rates with respect to the functional                                                      
 currency. In the case of Banco Sabadell, the functional currency is the euro. This risk occurs mainly in currency exchange transactions and currency derivatives. |

| – | Equity price risk: risk arising from fluctuations in the value of capital instruments (shares and quoted indices). 
 This risk is reflected in the market prices of the securities and their derivatives.                               |

Changes in commodities prices have not had an impact in the year, as the Group has residual (both direct and underlying) exposures. Market risk incurred in trading activity is measured using the VaR and stressed VaR methodologies. These allow risks to be standardised across different types of financial market transactions. VaR provides an estimate of the maximum potential loss associated with a position due to adverse, but normal, movements of one or more of