3.1. A breakdown of minimum capital requirements by risk type

The accompanying table shows total capital requirements itemized by credit risk, trading-book risk, exchange-rate risk, operational risk and other requirements as of December 31, 2013 and 2012.

The total amount for credit risk includes the positions in securitizations (standardized and advanced approach) and equity portfolio.

Chart 3. Capital requirements by risk type

Table 8. Capital requirements by risk type

(Millions of euros)

	Capital amount
Exposure categories and risk types	2013	2012
Central governments and central banks	1,489	1,229
Regional governments and local authorities	164	149
Public-sector institutions and other public entities	112	86
Multilateral development banks	1	2
Institutions	342	357
SMEs	5,197	5,190
Retail	2,586	2,420
Collateralized with real-estate property	1,549	1,663
Default status	728	694
High risk	93	155
Guaranteed bonds	15	8
Short-term to Institutions and Corporates	18	12
Collective Investment Institutions (IIC)	21	4
Other exposures	981	1,039
Securitized positions	138	239
Total credit risk by the standardized approach	13,433	13,246
Central governments and central banks	17	17
Institutions	992	1,139
SMEs	4,488	5,135
Retail	1,879	2,060
Of which: Secured by real estate collateral	1,018	1,190
Of which: Qualifying revolving retail	612	598
Of which: Other retail assets	249	272
Equity	1,079	795
By method:
Of which: Simple Method	151	176
Of which: PD/LGD Method	821	497
Of which: Internal Models	107	122
By nature:
Of which: Exchange-traded equity instruments	670	517
Of which: Non-trading equity instruments in sufficiently diversified portfolios	408	278
Securitized positions	95	122
Total credit risk by the advanced measurement approach	8,550	9,268
TOTAL CREDIT RISK	21,983	22,514
Standardized:	224	154
Of which: Price Risk from fixed-income positions	190	119
Of which: Correlation price risk	12	12
Of which: Price Risk from equity portfolios	22	23
Advanced: Market Risk	616	693
TOTAL TRADING-BOOK ACTIVITY RISK	840	847
EXCHANGE RATE RISK (STANDARDIZED APPROACH)	780	540
OPERATIONAL RISK (1)	2,421	2,405
OTHER CAPITAL REQUIREMENTS	–122	47
CAPITAL REQUIREMENTS	26,353	26,562

(1) See Chapter 6 of the report.

The amounts shown in the table above on credit risk include the counterparty risk in trading-book activity as shown below:

Table 9. Amounts of counterparty risk in the trading book

(Millions of euros)

	Capital amount
Counterparty risk trading book activities	2013	2012
Standardized Approach	162	205
Advanced Measurement Approach	455	481
Total	617	686

The management of new netting and collateral agreements have reduced the capital requirements for counterparty risk.

The Group currently has no capital requirements for trading-book activity liquidation risk.