Banking policy makers in maintaining financial stability, especially funding activities, have become a serious concern after thefinancial crisis 2007/2008. Based on these conditions, the purpose of this study is to analyze the effect of funding risk on bank stability in Indonesian banking. Using the hyphotesis funding risk-stability and ownership, funding risk-stability, this study analyzes 141 conventional banks in Indonesia for the period 2004-2018, using the generalized method moment (SYS-GMM) system. The results of the study finding the banking industry in Indonesia supports the hypothesis of a positive funding risk had effect on bank stability. However, using the ownership base core capital, this study finding small banks (BUKUI) had a negative significance effect on stability with funding risk. Then, large bank (BUKUIV) had negative effect on bank stability with funding risk but not significance. However, medium size bank (BUKUII and BUKUIII) has positive not significance effect on bank stability.
Dadang Lesmana (Sat,) studied this question.