Indonesian Banking Sustainability During the Covid -19 Pandemic: Will the Credit Restructuring Policy Have a Significant Impact?

This study aims to (1) measure the financial sustainability ratio (FSR) of banks in Indonesia During the pandemic covid 19; (2) test the impact of the implementation of POJK No. 11/2020 concerning National Economic Stimulus as a counter-cyclical policy impact pandemic covid 19 to FSR banking. The study used 38 conventional commercial banks in Indonesia with an observation period of 36 months, calculated from 1 year before the implementation of POJK No. 11/POJK.03/2020 and 1 year after implementation. The data analysis method used a non-parametric Wilcoxon signed rank test. The study results indicate significant differences in the financial sustainability ratio of conventional commercial banks in Indonesia before and after implementing POJK No.11/2020. The average FSR calculation after policy implementation is lower than before implementation. This indicates that the restructuring policy has not been able to improve bank performance which has an impact on increasing the sustainability ratio. The results study this expected to contribute significantly to bank managers, Bank Indonesia, and the Financial Services Authority. The results of this study can be used as a base evaluation effectiveness application of policy government. For Bank Indonesia, the results study could be used to design a policy that could increase banking FSR due to the Covid-19 pandemic. [ABSTRACT FROM AUTHOR]