Aloysius Deno Hervino, Maria Margaretha Sumaryati


This research aimed to prove that the degree of banking competition on collecting funds in Indonesia banking
industry was able to explain the risk-taking lending behavior in its intermediary function, including the
influence of some macro economy variables such as gross domestic product (GDP) and interbank money market
(PUAB). Using error correction model engel granger (ECM-EG), the results of this research were both shortrun
and long-run model. The degree of the banking competition had non-monotonic relationship on the risktaking
lending behavior in Indonesia banking industry; moreover, the GDP had positif impact and the PUAB
had a negtive impact on it.


bank competition, bank failure, Herfindahl-Hirschman Index, risk-taking, z-score


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