State-owned banks in China losing efficiency battle to joint stock banks.
The article examines the efficiency of Chinese banks from 2008 to 2017 using a special analysis method. State-owned banks were more efficient than joint stock banks before 2012, but this changed after 2012. Factors like noninterest income and net interest margin affect bank efficiency positively, while the cost-to-income ratio has a negative impact. The study also found a threshold effect of noninterest income on bank efficiency.