Company: BBVXF
Filing Date: 2025-09-05
Form Type: F-4/A
Source: 0001193125-25-196513
Chunk: 586

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-09-05
Form: F-4/A
Chunk 586
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 the customer is likely to continue to experience financial difficulties (in other words, whether they are facing short-term or long-term difficulties). |

| – | Refinancing and restructuring conditions based on a realistic repayment schedule that is in line with                                                             
 borrowers’ current and expected payment capacity, also taking into account the macroeconomic situation and outlooks, avoiding their postponement to a later date. |

| – | If new guarantees are provided, these must be regarded as a secondary and exceptional means of recovering the debt,                                       
 so as to avoid adversely affecting existing means. In any case, the ordinary interest accrued should be paid up to the refinancing or restructuring date. |

| – | Limits are applied to the length of grace periods and to the granting of successive refinancing. |

The Group continually monitors compliance with the agreed terms and with the above policies. Internal risk models Banco Sabadell Group also has a system in place which is made up of three lines of defence to ensure the quality and oversight of internal models, as well as a governance process specifically designed to manage and monitor these models and to ensure compliance with regulations and the Supervisor’s instructions. The governance framework of internal credit risk and impairment models (management of risk, calculation of regulatory capital and provisions) is based on the following pillars:

| – | Effective management of changes to internal models. |

| – | Ongoing monitoring of the performance of internal models. |

| – | Regular reporting, both internal and external. |

| – | Management tools for internal models. |

One of the main bodies within the governance framework of internal credit risk and impairment models is the Models Committee, which meets on a monthly basis and has internal approval responsibilities, depending on the materiality of the risks, and which also monitors internal credit risk models. Banco Sabadell Group also has an advanced management model for its non-performingexposures in place to manage the impaired assets portfolio. The purpose of managing non-performingexposures is to find the best solution for the customer upon detecting the first signs of impairment, reducing the entry into default of customers with financial difficulties, ensuring intensive management and avoiding downtime between the different phases. For further quantitative information, see Schedule IV “Other risk information: Refinancing and restructuring transactions” to these consolidated annual financial statements. A-394

Real estate credit risk management As part of its general policy on risks and, in particular, its policy on the real estate development sector, the Group has a number of specific policies in place for mitigating risks. The main measure