The Financial Stability Board (FSB) has published policy recommendations to strengthen the oversight and regulation of the shadow banking system. The FSB has focused on five specific areas in which policies are needed to mitigate the potential systemic risks associated with shadow banking. These areas include: the spill-over effect between the regular banking system and the shadow banking system, susceptibility of money market funds to “runs”, incentives associated with securitisation, pro-cyclical incentives associated with securities financing transactions, and systemic risks posed by other shadow banking activities.