In this paper, we argue that the joint use of ex-ante regulation and ex-post liability rules is efficient when there … create a risk for the environment. Moreover, we suggest that a joint use of liability and regulation should more frequently …

, (3) high liquid asset holdings reduce the marginal effect of increasing short term liability on systemic risk, and (4 …) changing liquid asset holdings has little effect on systemic risk when short term liability is sufficiently low. -- Financial … stability ; Financial system regulation and policies …