In Indonesia, each of the respective provinces have regional bank called Regional Development Bank (BPD = Bank Pembangunan Daerah). The bank is expected to increase the economic growth in each region. The purpose of this study is to analyze the effect of management policy on banking performance of Regional Development Bank in Indonesia. Banking performance is measured by return on assets (ROA), while management policy consists of capital adequacy ratio (CAR), loan to deposit ratio (LDR), non performing loan (NPL), net interest margin (NIM)), and firm size as control variabel. The population in this study were Regional Development Bank in Indonesia as many 26 banks, whereas sample taken by 20 banks. To test the hypothesis of the study is used the multiple regression analysis. The results showed that the capital adequacy ratio (CAR), LDR, and NIM significant and positif effect on the performance of the bank, while NPL has a negatif effect but no significant and firm size has no significant and positif effect on the performance.