BBVA in 2012

Regulatory environmentSince 2008 the international financial system has been hit by a regulatory tsunami. The extent ofthe crisis has led international authorities to adopt a tough and firm response to avoid past errors.Three major economic policy objectives can be identified in the measures adopted for globalregulatory reform:• Strengthening the solvency and resilience of banks.• Mitigating systemic risk.• Minimizing the burden sustained by taxpayers.The extent ofthe crisis has ledthe authoritiesto implementa broad-basedregulatory reform16Once the measures have been adopted and the technical outlines and design of the regulationsare approaching conclusion, the authorities of the countries involved immersed in their practicalimplementation. The Financial Stability Board monitors the situation to ensure the measures are beingimplemented appropriately in each of the jurisdictions. The banks will have to make internal changesto adapt to the regulatory reform. This could lead to a new banking system defined by the followingparameters:• A stronger risk culture.• A return to the core banking activity and social function.• Stronger corporate governance.• Business structures and models with simpler resolution plans.Environment and BBVA positioning41