Purpose – The purpose of this paper is to estimate the cost and profit efficiency (PE) of Chinese commercial banks in the last ten years and investigate how market power affects bank efficiency and stability. Design/methodology/approach – The paper builds a stochastic frontier analysis model...

Purpose–The purpose of this paper is to estimate the cost and profit efficiency (PE) of Chinese commercial banks in the last ten years and investigate how market power affects bank efficiency and stability. Design/methodology/approach -The paper builds a stochastic frontier analysis model to...