4.2. Information on credit risks

4.2.1. Exposure to credit risk

Pursuant to Article 5 of the Solvency Regulations, with respect to the capital requirements for credit risk, exposure is understood to be any asset item and all items included in the Group’s memorandum accounts involving credit risk and not deducted from the Group’s eligible capital. Accordingly, inclusion is made mainly of customer lending items, with their corresponding undrawn balances, letters of credit and collaterals, debt securities and capital instruments, cash and deposits in central banks and credit institutions, assets purchased or sold under a repurchase agreement (asset and liability repos), financial derivatives and fixed assets.

Below is a presentation of the balance of the original exposure and the allowances under the advanced measurement and standardized approaches as of December 31, 2014 and 2013. In accordance with Article 444 e) of the Solvency Regulations, only the exposure net of allowances is presented for those exposures calculated under the standardized approach.

TABLE 14: Exposure to credit risk
2014

(Millions of euros)

				Exposure after applying conversion factors
Category of exposure	Original exposure (1)	Provisions (2)	Exposure Net of provisions (3)	On-balance-sheet exposure after mitigation techniques	Off-balance-sheet exposure after mitigation techniques	Fully Adjusted Value of the exposure	Average CCF	EAD
Central governments or central banks	103,926	-18	103,909	106,406	2,498	108,904	51%	107,683
Regional governments or local authorities	7,482	-15	7,467	7,236	151	7,387	55%	7,320
Public sector entities	5,524	-29	5,496	2,181	918	3,099	38%	2,532
Multilateral Development banks	93	0	93	92	0	93	0%	92
International organizations	16	0	16	16	0	16	2%	16
Institutions	20,366	-22	20,344	10,337	10,040	20,377	11%	11,461
Corporates	107,908	-163	107,744	59,464	42,678	102,143	28%	71,340
Retail	59,973	-467	59,506	40,604	16,581	57,185	16%	43,338
Secured by mortgages on immovable property	54,500	-353	54,147	51,750	732	52,482	49%	52,109
Exposures in default	9,311	-3,440	5,870	5,181	63	5,244	68%	5,224
Items associated with particularly high risk	380	-31	349	174	35	208	7%	176
Covered bonds	605	0	605	605	0	605	0%	605
Short-term claims on institutions and corporate	2,063	0	2,063	1,834	0	1,834	0%	1,834
Collective investments undertakings (CIU)	124	0	124	46	4	51	92%	50
Other exposures	27,105	-84	27,020	30,801	667	31,468	79%	31,329
TOTAL STANDARDIZED APPROACH	399,375	-4,621	394,754	316,727	74,369	391,096		335,110
Central governments or central banks	3,001	-4	N/A	4,153	749	4,902	50%	4,529
Institutions	112,235	-78	N/A	105,642	6,338	111,981	61%	109,494
Corporates	130,154	-6,711	N/A	75,120	53,389	128,508	52%	102,682
Retail	96,276	-1,620	N/A	83,698	12,577	96,276	5%	86,866
Of which: Secured by real estate collateral	70,113	-721	N/A	69,880	233	70,113	10%	69,892
Of which: Qualifying revolving retail	17,943	-516	N/A	6,377	11,566	17,943	24%	9,134
Of which: Other retail assets	8,219	-384	N/A	7,441	778	8,219	51%	7,839
TOTAL ADVANCED MEASUREMENT APPROACH	341,667	-8,413		268,613	73,054	341,667		303,570
TOTAL CREDIT RISK DILUTION AND DELIVERY	741,042	-13,034	394,754	585,340	147,423	732,762	-	638,680
Securitized positions	3,765	-38	2,705	3,747	0	3,747	0%	3,747
Standardized Approach	2,723	-18	2,705	2,705	0	2,705	0%	2,705
Advanced Measurement Approach	1,042	-21	N/A	1,042	0	1,042	0%	1,042
Equity	10,696	-61	N/A	10,442	0	10,442	0%	10,696
Simple Method	3,980	-40	N/A	3,980	0	3,980	0%	3,980
Non-trading equity instruments in sufficiently diversified portfolios	3,712	-34	N/A	3,712	0	3,712	0%	3,712
Exchange-traded equity instruments	268	-6	N/A	268	0	268	0%	268
PD/LGD Method	6,462	0	N/A	6,462	0	6,462	0%	6,462
Internal Models	254	-21	N/A	0	0	0	0%	254
TOTAL CREDIT RISK	755,503	-13,134	397,459	599,529	147,423	746,952	-	653,124

(1) Gross exposure prior to the application of risk mitigation techniques. (2) Includes provisions for impairment of financial and non-financial assets and other valuation adjustments, with the exception of the generic provision included in the capital base as more additional capital, as per solvency regulations (3) Exposures are adjusted solely by provisions in the case of exposures by the standardized approach.

2013

(Millions of euros)

				Exposure after applying conversion factors
Category of exposure	Original exposure (1)	Provisions (2)	Exposure Net of provisions (3)	On-balance-sheet exposure after mitigation techniques	Off-balance-sheet exposure after mitigation techniques	Fully Adjusted Value of the exposure	Average CCF	EAD
Central governments or central banks	93,548	-47	93,502	87,386	5,664	93,050	41%	89,724
Regional governments or local authorities	9,195	0	9,195	6,500	347	6,847	47%	6,663
Public sector entities	4,486	0	4,486	3,511	1,318	4,829	36%	3,980
Multilateral Development banks	50	0	50	50	0	50	0%	50
International organizations	8	0	8	8	0	8	1%	8
Institutions	20,702	-12	20,690	10,606	9,728	20,334	42%	14,713
Corporates	93,305	-806	92,499	55,710	31,152	86,862	36%	66,969
Retail	60,395	-67	60,328	41,141	16,205	57,346	14%	43,372
Secured by mortgages on immovable property	51,916	-115	51,801	49,670	795	50,465	48%	50,050
Exposures in default	14,836	-4,163	10,674	8,657	71	8,728	25%	8,675
Items associated with particularly high risk	1,133	-16	1,118	877	53	930	1%	878
Covered bonds	911	0	911	911	0	911	0%	911
Short-term claims on institutions and corporate	663	0	663	663	0	663	0%	663
Collective investments undertakings (CIU)	816	0	816	253	8	261	100%	261
Other exposures	22,210	-98	22,112	26,860	735	27,595	38%	27,139
TOTAL STANDARDIZED APPROACH	374,175	-5,323	368,852	292,804	66,075	358,879		314,055
Central governments or central banks	1,581	-2	-	2,707	808	3,515	50%	3,115
Institutions	89,458	-76	-	80,993	8,161	89,155	56%	85,558
Corporates	114,333	-6,717	-	63,196	49,507	112,703	53%	89,644
Retail	96,037	-1,566	-	84,850	11,186	96,036	26%	86,750
Of which: Secured by real estate collateral	72,829	-676	-	72,446	383	72,829	6%	72,470
Of which: Qualifying revolving retail	17,160	-532	-	6,544	10,616	17,160	26%	9,273
Of which: Other retail assets	6,048	-357	-	5,860	187	6,047	56%	5,006
TOTAL ADVANCED MEASUREMENT APPROACH	301,409	-8,362	0	231,746	69,662	301,407		265,066
TOTAL CREDIT RISK DILUTION AND DELIVERY	675,584	-13,685	368,852	524,550	135,737	660,287	-	579,122
Securitized positions	5,730	-66	4,783	5,692	0	5,692	0%	5,619
Standardized Approach	4,820	-37	4,783	4,783	-	4,783	0%	4,710
Advanced Measurement Approach	910	-28		910	-	910	0%	910
Equity	8,818	-128	-	8,443	-	8,443	0%	8,818
Simple Method	830	-63	-	830	-	830	0%	830
Non-trading equity instruments in sufficiently diversified portfolios	620	-59	-	620	-	620	0%	620
Exchange-traded equity instruments	209	-5	-	209	-	209	0%	209
PD/LGD Method	7,613	0	-	7,613	-	7,613	0%	7,613
Internal Models	375	-65	-	0	-	0	0%	375
TOTAL CREDIT RISK	690,132	-13,878	373,635	538,685	135,737	674,422	-	593,559

(1) Gross exposure prior to the application of risk mitigation techniques. (2) Include provisions for impairment of financial and non-financial assets and other valuation adjustments, with the exception of the generic provision included in the capital base as more additional capital, as per solvency regulations. (3)Exposures are adjusted solely by provisions in the case of exposures by the Standardized Approach.

4.2.2. Average value of the exposures throughout 2014 and 2013.

The table below shows the average value of exposure to credit risk in 2014 and 2013 for both the advanced measurement and standardized approaches for each one of the exposure categories:

TABLE 15: Average value of the exposures throughout 2013 and 2014

(Millions of euros)

Category of exposure	Original average exposure for the period
	2014	2013
Central governments or central banks	96,222	97,465
Regional governments or local authorities	6,575	9,900
Public sector entities	6,059	3,728
Multilateral Development banks	91	79
International organizations	10	15
Institutions	20,217	22,879
Corporates	100,720	95,588
Retail	58,305	57,316
Secured by mortgages on immovable property	54,005	53,552
Exposures in default	10,776	13,454
Items associated with particularly high risk	454	1,435
Covered bonds	4,481	775
Short-term claims on institutions and corporate	2,040	734
Collective investments undertakings (CIU)	169	243
Other exposures	25,388	23,228
TOTAL STANDARDIZED APPROACH	385,512	380,388
Central governments or central banks	2,495	1,367
Institutions	96,324	83,660
Corporates	123,953	120,542
Retail	101,774	97,614
Of which: Secured by real estate collateral	70,895	73,971
Of which: Qualifying revolving retail	17,827	17,404
Of which: Other retail assets	6,526	6,240
TOTAL ADVANCED MEASUREMENT APPROACH	324,546	303,183
TOTAL CREDIT RISK DILUTION AND DELIVERY (5)	710,058	683,571
Securitized positions	3,573	6,630
Of which: Standardized Approach	2,539	5,692
Of which: Advanced Measurement Approach	1,034	938
Equity	10,414	7,344
Of which: Simple Method	4,053	874
Equity instruments in sufficiently diversified portfolios	696	646
Exchange Traded equity instruments	3,357	228
Of which: PD/LGD Method	5,901	5,979
Of which: Internal Models	460	491
TOTAL CREDIT RISK	724,045	697,545

4.2.3. Distribution by geographical area

The following chart shows the distribution by geographical area of the original exposure based on the obligor's country. The breakdown includes exposure under the standardized and advanced measurement approaches, without including positions in securitizations or equity.

TABLE 16: Distribution by geographical area of exposure to credit risk
2014

(Millions of euros)

Category of exposure	Total	Europe	Mexico	U.S.	South America	Rest of the World
Central governments or central banks	103,926	66,734	12,913	5,663	18,617	0
Regional governments or local authorities	7,482	1,920	1,014	4,461	86	0
Public sector entities	5,524	385	3,148	236	1,710	45
Multilateral Development banks	93	38	0	12	42	0
International organizations	16	16	0	0	0	0
Institutions	20,366	13,691	1,542	1,883	2,685	565
Corporates	107,908	18,794	16,159	49,601	22,853	500
Retail	59,973	19,891	5,915	7,302	26,826	39
Secured by mortgages on immovable property	54,500	17,747	9,799	14,024	12,926	3
Exposures in default	9,311	6,586	947	528	1,224	26
Items associated with particularly high risk	380	380	0	0	0	0
Covered bonds	605	0	605	0	0	0
Short-term claims on institutions and corporate	2,063	211	0	1,238	614	0
Collective investments undertakings (CIU)	124	113	0	7	5	0
Other exposures	27,105	14,535	6,559	1,491	4,494	26
Securitized positions	2,723	867	188	1,666	0	1
TOTAL CREDIT RISK BY THE STANDARDIZED APPROACH	402,098	161,910	58,790	88,112	92,082	1,205
Central governments or central banks	3,001	152	113	1,619	464	654
Institutions	112,235	105,369	540	3,276	172	2,878
Corporates	130,154	99,706	15,408	7,558	2,546	4,937
Retail	96,276	82,149	14,111	2	8	5
Securitized positions	1,042	1,006	0	34	0	2
TOTAL CREDIT RISK BY THE ADVANCED MEASUREMENT APPROACH	342,709	288,382	30,172	12,489	3,191	8,475
TOTAL CREDIT RISK DILUTION AND DELIVERY	744,807	450,292	88,962	100,601	95,273	9,680

Note: Positions in equity are not included.

2013

Category of exposure	Total	Europe	Mexico	U.S.	South America	Rest of the World
Central governments or central banks	93,548	59,983	12,015	3,436	18,062	52
Regional governments or local authorities	9,195	1,657	6,142	1,113	190	93
Public sector entities	4,486	1,792	0	323	2,371	0
Multilateral Development banks	50	0	0	0	50	0
International organizations	8	8	0	0	0	0
Institutions	20,702	12,460	2,686	1,992	3,431	133
Corporates	93,305	11,920	19,465	41,147	20,198	575
Retail	60,395	20,602	7,524	7,130	25,129	9
Secured by mortgages on immovable property	51,916	16,986	10,531	12,714	11,677	9
Exposures in default	14,836	12,090	1,408	420	915	2
Items associated with particularly high risk	1,133	810	79	86	111	47
Covered bonds	911	0	911	0	0	0
Short-term claims on institutions and corporate	663	196	0	3	464	0
Collective investments undertakings (CIU)	816	804	0	6	5	0
Other exposures	22,210	7,645	7,230	1,778	5,557	0
Securitized positions	4,820	253	70	4,498	0	0
TOTAL CREDIT RISK BY THE STANDARDIZED APPROACH	378,995	147,206	68,062	74,646	88,160	921
Central governments or central banks	1,581	116	2	591	480	392
Institutions	89,458	84,704	431	2,126	196	2,003
Corporates	114,333	99,961	816	6,933	2,154	4,470
Retail	96,037	82,453	13,428	18	39	99
Securitized positions	910	898	0	0	0	12
TOTAL CREDIT RISK BY THE ADVANCED MEASUREMENT APPROACH	302,319	268,131	14,676	9,668	2,869	6,975
TOTAL CREDIT RISK DILUTION AND DELIVERY	681,314	415,337	82,739	84,313	91,029	7,896

Note: Positions in equity are not included.

As can be seen from the above table, the original exposure in Europe under advanced credit risk models accounts for over 60% of the total, while in the remaining countries the percentage is around 20%.

It also shows graphically the distribution of original exposure by geographical area, revealing the Group's high level of geographical diversification, which constitutes one of the key levers for its strategic growth.

CHART 5: Distribution by geographical area of exposure to credit risk

The next table shows the distribution by geographical area of the book balances of the allowances for financial and non-financial asset losses and for contingent liabilities.

TABLE 17: Distribution by geographical area of the book balances of the non-performing and impaired exposures of financial assets and contingent liabilities
2014

(Millions of euros)

	Total	Europe	Mexico	U.S.	South America	Rest of the World
Non-performing and impaired exposures	24,970	21,547	1,271	576	1,501	74

Note: Accounting balances solvency perimeter excluding equity positions

2013

	Total	Europe	Mexico	U.S.	South America	Rest of the World
Non-performing and impaired exposures	25,977	23,648	1,297	342	680	11

Note: Accounting balances solvency perimeter excluding equity positions

The next table shows the distribution by geographical area of the book balances of the allowances for financial asset losses and for contingent liabilities:

TABLE 18: Distribution by geographical area of the book balances of the value adjustments for impairment of financial assets and contingent liabilities
2014

(Millions of euros)

	Total	Europe	Mexico	U.S.	South America	Rest of the World
Value adjustments and provisions	15,254	12,419	1,486	242	1,093	14

Note: Accounting balances solvency perimeter excluding equity positions

2013

	Total	Europe	Mexico	U.S.	South America	Rest of the World
Value adjustments and provisions	15,914	12,213	1,606	597	1,489	9

Note: Accounting balances solvency perimeter excluding equity positions

4.2.4. Distribution by sector

Below is the distribution by economic sector (standardized and advanced measurement approaches) of the original exposure, excluding equity positions.

TABLE 19: Distribution by sector of exposure to credit risk
2014

(Millions of euros)

Category of exposure	Original exposure by sector
	Total	Credit institutions, insurance and brokerage	Public sector	Agriculture	Industry	Construction	Commercial	Individuals	Other sectors
Central governments or central banks	103,926	0.06%	13.59%	0.00%	0.05%	0.01%	0.05%	0.11%	0.07%
Regional governments or local authorities	7,482	0.07%	0.58%	0.00%	0.05%	0.02%	0.06%	0.13%	0.08%
Public sector entities	5,524	0.01%	0.69%	0.00%	0.01%	0.00%	0.01%	0.02%	0.01%
Multilateral Development Banks	93	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
International organizations	16	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Institutions	20,366	1.00%	0.37%	0.02%	0.21%	0.07%	0.23%	0.51%	0.33%
Corporates	107,908	0.36%	0.52%	0.39%	2.36%	1.01%	6.47%	0.66%	2.72%
Retail	59,973	0.18%	0.13%	0.10%	0.47%	0.24%	0.74%	4.91%	1.29%
Secured by mortgages on immovable property	54,500	0.10%	0.13%	0.04%	0.18%	0.10%	0.32%	4.47%	1.98%
Exposures in default	9,311	0.02%	0.03%	0.02%	0.07%	0.12%	0.13%	0.41%	0.44%
Items associated with particularly high risk	380	0.00%	0.00%	0.00%	0.01%	0.00%	0.00%	0.02%	0.02%
Covered bonds	605	0.08%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Short-term claims on institutions and corporate	2,063	0.01%	0.01%	0.00%	0.01%	0.00%	0.18%	0.01%	0.06%
Collective investments undertakings (CIU)	124	0.02%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Other exposures	27,105	0.21%	0.20%	0.01%	0.12%	0.04%	0.14%	0.28%	2.65%
Securitized positions	2,723	0.03%	0.28%	0.00%	0.00%	0.00%	0.06%	0.00%	0.00%
TOTAL CREDIT RISK BY THE STANDARDIZED APPROACH	402,098	2.16%	16.53%	0.58%	3.54%	1.61%	8.39%	11.54%	9.65%
Central governments or central banks	3,001	0.00%	0.40%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Institutions	112,235	11.59%	0.74%	0.03%	0.43%	0.14%	0.46%	1.03%	0.66%
Corporates	130,154	0.87%	0.06%	0.12%	6.49%	1.54%	2.35%	0.18%	5.86%
Retail	96,276	0.00%	0.00%	0.01%	0.08%	0.03%	0.12%	12.59%	0.08%
Securitized positions	1,042	0.14%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TOTAL CREDIT RISK BY THE ADVANCED MEASUREMENT APPROACH	342,708	12.60%	1.19%	0.16%	7.00%	1.71%	2.93%	13.80%	6.60%
TOTAL CREDIT RISK	744,807	14.76%	17.72%	0.74%	10.54%	3.33%	11.32%	25.34%	16.25%

Note: Positions in equity are not included.

2013

Category of exposure	Original exposure by sector
	Total	Credit institutions, insurance and brokerage	Public sector	Agriculture	Industry	Construction	Commercial	Individuals	Other sectors
Central governments or central banks	93,548	0.00%	13.73%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Regional governments or local authorities	9,195	0.00%	1.35%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Public sector entities	4,486	0.00%	0.66%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Multilateral Development Banks	50	0.00%	0.01%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
International organizations	8	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Institutions	20,702	3.04%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Corporates	93,305	0.47%	0.03%	0.57%	1.81%	0.91%	6.38%	0.00%	3.52%
Retail	60,395	0.07%	0.00%	0.15%	0.37%	0.22%	1.17%	5.65%	1.24%
Secured by mortgages on immovable property	51,916	0.01%	0.00%	0.03%	0.10%	0.11%	0.23%	5.05%	2.09%
Exposures in default	14,836	0.07%	0.01%	0.03%	0.16%	0.18%	0.19%	0.80%	0.74%
Items associated with particularly high risk	1,133	0.00%	0.00%	0.00%	0.01%	0.01%	0.02%	0.03%	0.09%
Covered bonds	911	0.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Short-term claims on institutions and corporate	663	0.03%	0.00%	0.01%	0.00%	0.02%	0.01%	0.00%	0.03%
Collective investments undertakings (CIU)	816	0.12%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Other exposures	22,210	0.22%	0.00%	0.00%	0.05%	0.02%	0.05%	0.22%	2.69%
Securitized positions	4,820	0.05%	0.55%	0.00%	0.00%	0.00%	0.11%	0.00%	0.00%
TOTAL CREDIT RISK BY THE STANDARDIZED APPROACH	378,995	4.21%	16.34%	0.80%	2.51%	1.47%	8.15%	11.75%	10.40%
Central governments or central banks	1,581	0.00%	0.23%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
Institutions	89,458	8.95%	4.17%	0.00%	0.00%	0.00%	0.00%	0.00%	0.02%
Corporates	114,333	1.58%	0.05%	0.08%	5.70%	1.70%	2.00%	0.01%	5.66%
Retail	96,037	0.01%	0.00%	0.00%	0.02%	0.01%	0.02%	14.01%	0.03%
Securitized positions	910	0.13%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%
TOTAL CREDIT RISK BY THE ADVANCED MEASUREMENT APPROACH	302,319	10.67%	4.45%	0.09%	5.72%	1.70%	2.02%	14.02%	5.71%
TOTAL CREDIT RISK	681,314	14.88%	20.79%	0.88%	8.23%	3.17%	10.17%	25.77%	16.11%

Note: Positions in equity are not included.

The following table shows the distribution by counterparty of the book balances of the non-performing and impaired exposures of financial assets and contingent liabilities.

TABLE 20: Distribution by sector of the book balances of the non-performing and impaired exposures of financial assets and contingent liabilities
2014

(Millions of euros)

	Total	Credit institutions, insurance and brokerage	Public sector	Corporates	Retail	Other sectors
Non-performing and impaired exposures	24,970	1.01%	1.39%	60.44%	30.81%	6.35%

Note: Accounting balances solvency perimeter excluding equity positions

2013

	Total	Credit institutions, insurance and brokerage	Public sector	Corporates	Retail	Other sectors
Non-performing and impaired exposures	25,977	0.91%	1.05%	59.69%	30.61%	7.73%

Note: Accounting balances solvency perimeter excluding equity positions

The next table shows the distribution by counterparty of the book balances of allowances for financial asset losses and for contingent exposures:

TABLE 21: Distribution by sector of the book balances of the value adjustments for impairment of financial assets and contingent liabilities
2014

(Millions of euros)

	Total	Credit institutions, insurance and brokerage	Public sector	Corporates	Retail	Other sectors
Value adjustments and provisions	15,254	2.13%	1.02%	58.94%	27.72%	10.18%

Note: Accounting balances solvency perimeter excluding equity positions

2013

	Total	Credit institutions, insurance and brokerage	Public sector	Corporates	Retail	Other sectors
Value adjustments and provisions	15,914	1.99%	1.98%	60.55%	25.78%	9.71%

Note: Accounting balances solvency perimeter excluding equity positions

4.2.5. Distribution by residual maturity

The following table shows the distribution of original exposure by residual maturity, broken down by category of exposure under the standardized and advanced measurement approaches, excluding positions in equity:

TABLE 22: Distribution by residual maturity of exposure to credit risk
2014

(Millions of euros)

Category of exposure	Original exposure by residual maturity
	Total	Less than 1 year	Between 1 and 5 years	Over 5 years
Administraciones Centrales y Bancos Centrales	103,926	48,471	29,950	25,506
Administraciones regionales y Autoridades Locales	7,482	1,974	1,542	3,966
Entidades Sector Público y otras Instituciones Públicas	5,524	742	1,042	3,740
Bancos Multilaterales de Desarrollo	93	5,141	6,526	-11,574
Organizaciones Internacionales	16	2	13	1
Instituciones	20,366	-1,016	13,298	8,084
Empresas	107,908	20,525	49,438	37,945
Minoristas	59,973	24,052	21,151	14,770
Garantizadas con Inmuebles	54,500	3,157	6,896	44,447
Situación en mora	9,311	2,649	3,374	3,288
Alto Riesgo	380	54	77	249
Bonos Garantizados	605	0	605	0
Instituciones y empresas C/P	2,063	43	999	1,020
Instituciones de Inversión Colectiva	124	111	2	11
Otras exposiciones	27,105	7,711	9,823	9,571
Posiciones en titulización	2,723	3	186	2,534
TOTAL RIESGO DE CRÉDITO MÉTODO ESTÁNDAR	402,098	113,617	144,922	143,558
Administraciones Centrales y Bancos Centrales	3,001	883	231	1,887
Instituciones	112,235	72,927	16,934	22,374
Empresas	130,154	51,038	44,782	34,335
Minoristas	96,276	1,492	4,328	90,456
Posiciones en titulización	1,042	0	714	328
TOTAL RIESGO DE CRÉDITO MÉTODO AVANZADO	342,709	126,340	66,989	149,380
TOTAL RIESGO DE CRÉDITO DILUCIÓN Y ENTREGA	744,807	239,957	211,911	292,938

Note: Positions in equity are not included.

2013

Category of exposure	Original exposure by residual maturity
	Total	Less than 1 year	Between 1 and 5 years	Over 5 years
Administraciones Centrales y Bancos Centrales	93,548	51,537	27,839	14,172
Administraciones regionales y Autoridades Locales	9,195	2,617	1,241	5,337
Entidades Sector Público y otras Instituciones Públicas	4,486	1,916	1,765	805
Bancos Multilaterales de Desarrollo	50	50	0	0
Organizaciones Internacionales	8	0	8	0
Instituciones	20,702	12,030	5,481	3,191
Empresas	93,305	30,388	37,122	25,795
Minoristas	60,395	25,034	22,522	12,839
Garantizadas con Inmuebles	51,916	3,189	6,686	42,041
Situación en mora	14,836	1,078	13,758	0
Alto Riesgo	1,133	250	459	424
Bonos Garantizados	911	0	911	0
Instituciones y empresas C/P	663	535	50	78
Instituciones de Inversión Colectiva	816	810	0	6
Otras exposiciones	22,210	13,361	769	8,080
Posiciones en titulización	4,820	5	143	4,671
TOTAL RIESGO DE CRÉDITO MÉTODO ESTÁNDAR	378,995	142,802	118,754	117,440
Administraciones Centrales y Bancos Centrales	1,581	309	279	994
Instituciones	89,458	54,088	17,393	17,978
Empresas	114,333	51,103	35,848	27,381
Minoristas	96,037	14,876	3,944	77,217
Posiciones en titulización	910	277	434	199
TOTAL RIESGO DE CRÉDITO MÉTODO AVANZADO	302,319	120,653	57,897	123,769
TOTAL RIESGO DE CRÉDITO DILUCIÓN Y ENTREGA	681,314	263,454	176,651	241,209

Note: Positions in equity are not included.

4.2.6. Value adjustments for impairment losses and allowances for contingent risks and commitments

The following table presents the movement recorded in the years 2014 and 2013 in the value adjustments for allowances and impairment losses of financial assets on the balance sheet and for contingent risks and commitments, including country risk, generic and specific funds.

TABLE 23: Value adjustments for impairment losses and allowances for contingent risks and commitments
2014

(Millions of euros)

Item	Value adjustments and provisions	Provisions for contingent liabilities and commitments	Total
BALANCE AT START OF YEAR	15,548	367	15,914
Increase in impairment charged to income	11,783	82	11,865
Decrease in impairment credited to income	-6,865	-67	-6,932
Institutions acquired by the Group during the year	0	0	0
Institutions disposed of during the year	0	0	0
Transfers to written-off loans	-4,464	-1	-4,464
Exchange differences and others	-1,151	23	-1,129
BALANCE AT END OF YEAR (1)	14,850	404	15,254
Of which:
For impaired portfolio	12,037	219	12,256
For current non-impaired portfolio	2,813	184	2,997

Note: Solvency perimeter (1) Includes generic provision eligible as capital

2013

(Millions of euros)

Item	Value adjustments and provisions	Provisions for contingent liabilities and commitments	Total
BALANCE AT START OF YEAR	14,801	341	15,142
Increase in impairment charged to income	11,054	96	11,150
Decrease in impairment credited to income	-4,921	-52	-4,973
Institutions acquired by the Group during the year	0	0	0
Institutions disposed of during the year	-30	-1	-31
Transfers to written-off loans	-3,838	0	-3,838
Exchange differences and others	-1,518	-18	-1,521
BALANCE AT END OF YEAR	15,548	367	15,914
Of which:
For impaired portfolio	12,987	202	13,190
For current non-impaired portfolio	2,560	165	2,725

Note: Solvency perimeter

4.2.7. Total impairment losses for the period

The following table shows details of impairment losses and allowances on financial assets and contingent risks and commitments, as well as derecognition of losses recognized previously in asset write-offs recorded directly in the income statement in 2014 and 2013.

TABLE 24: Total impairment losses for the period

(Millions of euros)

ITEMS	2014	2013
Financial assets	4,401	5,628
Of which:
Recovery of written-off assets	443	362
Contingent exposure and commitments (recoveries)	15	44
Total impairment losses	4.417	5.672