FSB publishes peer review on out-of-court corporate debt workouts

Tomoko Amaya, Vice Minister for International Affairs at the Japan Financial Services Agency (JFSA) and Chair of the peer review team, said “The potential for increased corporate stress in the aftermath of the COVID-19 pandemic underscores the importance of effective out-of- court workouts. [...] The review shows that there is no one-size-fits all approach to such workouts.” Fahad Almubarak, Governor of the Saudi Central Bank and Chair of the FSB’s Standing Committee on Standards Implementation (SCSI) that oversaw the preparation of the peer review, said “This report provides a valuable comparison of the approaches and experiences of FSB jurisdictions with out-of-court corporate debt worko. [...] Thematic reviews focus on the implementation and effectiveness across the FSB membership of international financial standards developed by standard-setting bodies and policies agreed within the FSB in a particular area important for global financial stability. [...] This report describes the findings of the peer review, including key elements of the discussion in the FSB SCSI. [...] The FSB coordinates at the international level the work of national financial authorities and international standard-setting bodies and develops and promotes the implementation of effective regulatory, supervisory, and other financial sector policies in the interest of financial stability.