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

Commission (CNMV) announced the lifting of the suspension to their proceedings on June 13, 2007 and July
26, 2007 respectively.
On July 18, 2008, the board of the Bank of Spain sanctioned BBVA with a fine of one million euros for a
serious breach as typified in article 5.p) of the “Ley de Disciplina e Intervención de las Entidades de Crédito”
(Law regulating the conduct of financial entities) and also imposed various sanctions on the managers and
executives responsible for such conduct none of whom are presently members of the Board of Directors, or
hold executive office at BBVA.
On July 18, 2008, the Ministry of Economy and Finance sanctioned the entity with a fine of two million euros,
as a result of the proceeding initiated by the CNMV, for a very serious breach under Article 99 ñ) of the Stock
Markets Act.
The Sixth Section of the Contentious Administrative Court of the National Court, in its rulings of May 19 and
25, 2010, deemed the contentious-administrative appeal lodged by BBVA against these resolutions
appropriate and nullified the sanctions against the entity.
59. SUBSEQUENT EVENTS
Amendment of the Bank of Spain Circular 4/2004
On July 13, 2010, the Bank of Spain Circular 3/2010 of June 29 was published in the Boletín Oficial del
Estado (BOE). The Circular introduced a modification to Circular 4/2004 with regard to hedging for
impairment losses on credit risk (non-performing loan provisions) by Spanish credit institutions.
The Bank of Spain has modified and updated certain parameters established by Annex IX of said Circular to
adjust them to the experience and information of the Spanish banking sector as a whole following the
financial crisis of the past few years.
The modification to the Circular will enter into force on September 30, 2010. At the date of preparation of
these consolidated interim financial statements, the Group is assessing the impact of this modification, which
it anticipates will not be substantial; whatever the case, any such impact will be absorbed by the funds for
impairment losses.
60. EXPLANATION ADDED FOR TRANSLATION TO ENGLISH
These accompanying consolidated financial statements are presented on the basis of IFRS’s, as adopted by
the European Union. Certain accounting practices applied by the Group that conform to EU-IFRS’s may not
conform with other generally accepted accounting principles.
130