Information of Prudential Relevance 2014

9.1 Governance and monitoring

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The liquidity and planning strategy in the BBVA Group is executed with segregation of roles and responsibilities, with the areas involved optimizing risk management and decision-making being properly escalated to the various governing bodies. The areas and bodies that exercise the most relevant functions in managing liquidity and funding risk are determined.

The Balance Sheet Management unit, through ALCO, designs and executes the strategies to be implemented, using the internal risk metrics in accordance with the corporate model. The evaluation and execution of the actions in each one of the UGLs are carried out by ALCO and the Management units corresponding to these UGLs.

The Global Risk Management (GRM) corporate area acts as an independent unit that is responsible for monitoring and analyzing risks, standardizing risk management metrics and providing tools that can anticipate potential deviations from targets. It also monitors the level of compliance with the risk limits established by the Executive Committee and reports regularly to the Risk Management Committee, the Board of Directors' Risk Committee and the Executive Committee, in accordance with the current corporate policy.

As for the new regulatory framework, the BBVA Group is continuing to develop a orderly plan to adapt to the regulatory ratios that will allow it to adopt best practices and the most effective and strictest criteria for their implementation sufficiently in advance.

One of these aspects is that the ratio will be included as a regulatory requirement not before October 1, 2015, associated with a demand for 60% compliance, which should reach 100% by January 2018. This reference was exceeded throughout 2014 in the successive calculations of the LCR for BBVA Group and maintained above 100%.