Meanwhile, the Financial Services Authority continued to relax credit restructuring requirements in the banking industry by delaying principal and interest installments to avoid increasing non-performing loans and eroding capital by extending Consumer Protection in the Financial Services Sector (POJK - Perlindungan Konsumen Sektor Jasa Keuangan) through OJK Regulation (POJK) No. 48 of 2021, valid until March 2023.
All these measures will definitely impose profound influences on the business environment of enterprises. First, the share holding reform of the State-owned commercial banks has helped establish credit discipline, which could gradually reduce the enterprises’ reliance on the banking system for finance. In recent years, China has consistently pursued the principles to establish a standard corporate governance structure and to transform the operational mechanism.