Because liquidity problems can have significant effects on both sides of bank balance sheets, liquidity risks should be evaluated and addressed on an enterprise-wide basis, and should be tightly integrated with capital planning. 6  BIS Review 26/2008
Let us remind ourselves of the major shortcomings of the Basel framework prior to the Global Financial Crisis – (1) too little capital with too little going concern loss absorption capacity, (2) excessive leverage, (3) neglect of liquidity risks, (4) weaknesses in banks’ resolvability and (v) insufficient macro-prudential considerations.