Balance Sheet at 31 December 2010 of BBVA

This organisational set-up is supplemented with various committees, including the following:
The Global Asset Allocation Committee comprising the Chief Operating Officer of the Group, the CFO,
the director of corporate development and structure and the director of Global Risk Management. This
committee plans the process for risk acceptance, proposing an objective risk profile and proposes the
objective risk profile to the Board's Risks Committee.
The Global Internal Control & Operational Risk Committee is intended to periodically review, at Group
level and at the level of each unit, the control environment and the way that the Internal Control &
Operational Risk models are working, monitoring and locating the main operational risks open in the
Group, including those that are transversal in nature. This committee becomes the highest instance of
operational risk management in the Group.
The Risks Management Committee comprises the heads of the risks units in the business areas and
the heads of the Corporate Area Risks units. This body meets each month and is responsible for
defining the Group risks strategy (especially regarding the function's policies and structure within the
Group), for proposing the risks strategy to the Group Governing Bodies for approval, for monitoring the
management and control of risks in the Group and, where applicable, adopting the corresponding
measures. The Global Risk Management Committee comprises the corporate heads of the risks
function in the Group and the heads of risk in the different countries. This committee meets every six
months. Its remit includes reviewing the Group risks strategy and the review and pooling of the main
risks initiatives and projects in the business areas.
The Risk Management Committee comprises the following permanent members: the head of Global
Risk Management, the head of Corporate Risk Management and the head of the Technical Secretariat.
The rest of the members will depend on the transactions it must analyse, in each of its sessions. The
committee analyses and decides which financial programmes and operations fall within its remit and
debate those that fall outside it, passing them on, where applicable with a favourable opinion, to the
Risks Committee.
The ALCO has powers to actively manage the structural positions for the Group in interest rates and
exchange rates, global liquidity and equity. The Technology & Methods Committee is the forum in
which the hedging is decided to cover the requirements of models and infrastructure in the business
areas within the GRMoperational model.The New Products Committee is charged with studying and,
where applicable, approving the implementation of new products before initiating new activities; the
later monitoring and control for the new products that are authorised, and the orderly development of
the business and how to enable it to develop in a controlled environment.
CREDIT RISK.
Credit risk is defined as the loss that may occur stemming from the failure by a customer to fulfil the
agreed contractual obligations in financial transactions with BBVA or from impairment of their asset
quality.
Credit risk management includes managing counter-party risk, issuer risk, liquidation risk and country
risk. The Group's credit risk management starts with the process of analysis prior to taking decisions,
the decision-making, instrumentation and monitoring of the transactions formalised and may end with
their recovery. It also covers the entire process of control and reporting at customer, segment,
sector, business-unit or subsidiary level.
Any credit risk decision must be suitably valued and all customers must be classified in order to put
the decision to the body with their respective profile. The main underpinnings for decisions on
credit risk are: sufficient generation of customer funds to bear the repayments of the capital and
interest owing on the loans, sufficient assets and the constitution of suitable and sufficient
security to enable effective recovery of the transaction. All the credit transactions booked and
paid up must be accompanied by the basic information for studying their risk, the risk proposal.
They must be supported by the approval documents, reflecting the terms and conditions granted by
WARNING: The English version is only a translation of the original in Spanish for information purposes. In case of a discrepancy,
the Spanish original prevails.