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Banco Bilbao Vizcaya Argentaria
Banco Bilbao Vizcaya Argentaria

Financial services / Banking and Financial Services


Risks
1. Economic and Political Risk: The global economic landscape is highly dynamic and unpredictable, and changes in national economy, such as economic policy changes, currency swings, and changes in market forces can affect business prospects and the value of investments. Banco Bilbao Vizcaya Argentaria S.A. is subject to the risk of economic or political instability in different countries the bank operates in.

2. Interest Rate Risk: An increase in interest rates can greatly reduce profit margins, as rising costs of borrowing can offset reduced lending demand. Banco Bilbao Vizcaya Argentaria S.A. is exposed to interest rate risk as it frequently has to raise its deposit rates to attract more deposits.

3. Digitalisation Risk: The banking industry is undergoing rapid change as digital technology and Big Data are revolutionising customer experience. Banco Bilbao Vizcaya Argentaria S.A. is subject to the risk of technology disruption as other banks may introduce more agile online services and mobile banking systems that customers may prefer.

4. Regulatory Risk: Regulations can cause disruption to banking operations, while changes in regulations or new regulatory requirements can also impact profitability and lead to increased costs. Banco Bilbao Vizcaya Argentaria S.A. is subject to regulatory risk as it must comply with rules and regulations set by government bodies.

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