BANCO BILBAO VIZCAYA ARGENTARIA, S.A. AND ... - BBVA

on equity (ROE) by each business; and total capital, which determines the additional allocation in terms of
subordinate debt and preferred securities.
Because of its sensitivity to risk, ERC is an element linked to policies for managing the actual businesses.
The procedure provides a harmonized basis for assigning capital to businesses according to the risks
incurred and makes it easier to compare returns. The calculation of the CaR combines credit risk, market
risk, structural risk associated with the balance sheet equity positions, operational risk, fixed assets and
technical risks in the case of insurance companies. These calculations are carried out using internal models
that have been defined following the guidelines and requirements established under the Basel II Capital
Accord, with economic criteria prevailing over regulatory ones.
34. FINANCIAL GUARANTEES AND DRAWABLE BY THIRD PARTIES
The breakdown of the balances of these items as of June 30, 2010, and December 31, 2009 was as follows:
Millions of Euros
Financial Guarantees and Drawable by Third Parties
June December
2010 2009
Contingent Exposures
Collateral, bank guarantees and indemnities 27,429 26,266
Rediscounts, endorsements and acceptances 64 45
Rest 8,666 6,874
Total 36,159 33,185
Contingent Commitments
Drawable by third parties: 91,710 84,925
Credit institutions 2,120 2,257
Government and other government agency 4,292 4,567
Other resident sectors 30,153 29,604
Non-resident sector 55,145 48,497
Other commitments 6,298 7,398
Total 98,008 92,323
Since a significant portion of these amounts will reach maturity without any payment obligation materializing
for the consolidated companies, the aggregate balance of these commitments cannot be considered as an
actual future requirement for financing or liquidity to be provided by the Group to third parties.
For the six months ended June 30, 2010 and 2009 no issues of debt securities carried out by associate
entities, jointly controlled entities (accounted for using the equity method) or non-Group entities have been
guaranteed.
35. ASSETS ASSIGNED TO OTHER OWN AND THIRD-PARTY OBLIGATIONS
In addition to those mentioned in other notes in the accompanying consolidated financial statements as of
June 30, 2010 and December 31, 2009 (see Notes 13 and 26) the assets of consolidated entities that
guaranteed their own securities amounted to €92,127 million and €81,231 million, respectively. This amount
mainly corresponds to assets allocated as collateral for certain lines of short-term finance assigned to the
Group by central banks and to the issue of long-term mortgage-backed securities (Note 23.4) which,
pursuant to the Mortgage Market Act, are admitted as third-party collateral.
As of June 30, 2010 and December 31, 2009, none of the Group's assets were linked to any additional thirdparty
obligations apart from those described in the various notes to these accompanying consolidated
financial statements.
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