In general, the relative proportion of each of the risks
has remained stable for another quarter. The main
category (63.2%) was credit risk on portfolios
originated in the Group branch-network from its
own customer base.
Market risk was the smallest single item (3.2%),
given the nature of BBVA’s business and its policy of
minimal proprietary trading. Stake-holding risk, at
7.7% of total ERC, basically reflects the portfolio of
Holdings in Industrial & Financial Companies and
the stake in CITIC. The structural balance-sheet risk
(9.4%) originates from the management of the
Group’s structural interest-rate and foreign-exchange
risk, both stemming from the Group’s activity in the
different countries in which it operates.
Finally, ERC by operational risk remained practically
constant in the quarter, at 7.7%.
| 1Q10 |
27
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