How the Rules of no.11/POJK.03/2020 Banking Restructuring Policy Improve Financial Performance? (Empirical Study of Islamic Banks in Indonesia)

The Covid-19 pandemic has significantly impacted the economy, including the banking industry. The im-pact on the banking industry is a decline in the health of banks. One form of bank soundness assessment can be seen from the movement of financial ratios, including Non-Performing Financing (NPF), Capital Adequacy Ratio (CAR), Return on Assets (RoA), and Operational Expenditure to Operating Income (BOPO), and Financing to Deposits Ra-tio (FDR). This study aimed to examine the impact of the implementation of banking restructuring policies on the fi-nancial performance of Islamic Commercial Banks in Indonesia. This study used an observation period of 36 months, calculated 1 year before and after the implementation of rules No.11/POJK.03/2020. The sampling method used purposive sampling with 119 observational data samples. Hypothesis testing used the independent Mann-Whitney t-test since the data were not normally distributed. The results showed that the banking restructuring policy could only improve the bank's financial performance, namely CAR and FDR, but not the ratio of NPF, ROA, and BOPO. The contribution of this study can be used as one of the basics for assessing the effectiveness of implement-ing government policies. Copyright © 2022- All Rights Reserved.