Joint-stock banks in China outperform state-owned banks in efficiency
Commercial banks in China benefit from scale economy, which lowers costs and boosts efficiency. A study analyzed data from 2007-2013 using a cost function method. Results show that since 2007, Chinese banks have seen scale economy benefits, with joint-stock banks being more efficient than state-owned ones. To enhance efficiency, it is suggested to improve state-owned banks' ownership structure, encourage financial innovation, and expand science and technology financing.