The FSB is developing a comprehensive policy framework to reduce the moral hazard risks associated with SIFIs. This framework will build on the broader policy actions to improve the resilience of the overall financial system, including the reforms to the Basel capital and liquidity framework. The framework therefore consists of a set of additional policy approaches and tools to (i) improve the capacity to resolve SIFIs without taxpayers bearing the costs; (ii) reduce the probability and impact of a SIFI failure; and (iii) strengthen the core financial market infrastructure to reduce contagion risks if failure occurs. The framework explicitly targets resolution capacity and SIFI resolvability, along with institution-focused actions to force SIFIs to internalise the externalities they impose on the system and incentivise those firms to reduce their degree of systemic importance and/or to increase their resolvability.