There are clear advantages to setting liquidity and capital pre-positioning requirements through regulation. Regulation ensures consistency and clarity; provides a conduit for improvement, through public notice and comment; and offers a clear rational basis for any measures imposed.
There is also a role for supervision, not just in addressing the particular conditions at a given firm, but in generating and sharing better  10  Financial Stability Board, “FSB launches evaluation of too-big-to-fail reforms and invites feedback from stakeholders,” news release (May 23, 2019), https://www.fsb.org/2019/05/fsb-launches-evaluation-of-toobig-to-fail-reforms-and-invites-feedback-from-stakeholders/.