Once more, 2011 was a year of high market volatility. It was marked by a tough crisis of confidence in the euro zone, where there was a gradual deterioration in the internal situation of its members, that were pressed to strengthen the bases of the European Union and the euro. This situation has been reflected in significant increases in the risk premiums of each country with respect to Germany. Sovereign debt deteriorated and there has been a tightening of financing facilities for the countries in the euro zone. This situation has been accompanied by significant falls in stock markets and fears of a global recession.
In this difficult situation, the aim has been to adapt to the environment with diversified portfolios and high-quality assets that guarantee liquidity to customers. BBVA is committed to its fiduciary duty toward its customers, and only assumes risks in third-party portfolios that can be correctly identified, measured, monitored and managed.
Economic capital in the Asset Management unit stood at €76 million. Market risk accounts for 43.4%, with €33 million attributable, mainly, to guarantee risk. Operational risk stands at 54.0% of the total economic capital in the unit.
