Throughout the year progress has been made in the study, measurement and monitoring of risk in BBVA’s real estate activities.
With the aim of estimating the economic capital in order to measure of their risk, work has continued in developing models that contain fundamental parameters and drivers capable of characterizing the operation of this business (price changes, asset diversification development stage of the project, time horizon, geographical diversification, etc.) and that allow their performance to be forecasted with a reasonable level of confidence. The result of these models will be a range of scenarios of price variations classified by their probability of occurrence, which allow an evaluation of the potential gains or losses with respect to the valuations on the balance sheet.