[This section should be read in conjunction with CEBS's technical advice on liquidity risk management (second part), published September 2008, (see http://www.cebs.org/getdoc/bcadd664-d06b-42bb-b6d567c8ff48d11d/20081809CEBS_2008_147_%28Advice-on-liquidity_2nd-par.aspx); Liquidity Identity Card, June 2008, (see http://www.c-ebs.org/getdoc/9d01b79a-04ea44e3-85d2-3f8e7a9d4e20/Liquidity-Identity-Card.aspx); and CEBS Guidelines on liquidity buffers and survival period, published December 2009 (see http://www.cebs.org/documents/Publications/Standards---Guidelines/2009/LiquidityBuffers/Guidelines-on-Liquidity-Buffers.aspx). In the implementation of principles contained in this annex, national supervisory authorities and institutions should be aware of ongoing discussions regarding the proposals for changes of the liquidity regime to be introduced in the CRD IV. CEBS is closely monitoring the regulatory developments, has participated in the public consultation of the proposals for the CRD IV, and will amend, if necessary, the principles put forward here, once the legislative proposals are finalised.]

1. It should be noted that liquidity risk has two dimensions:

a. funding liquidity risk: the current or prospective risk arising from an institution's inability to meet its liabilities/obligations as they fall due without incurring unacceptable losses; and