Over the last decade, China has reformed its financial system to strengthen the competitiveness of its banking industry. China has carried out wide-ranging financial reform and restructuring since the mid-1990s. The pace of China's globalization seems to have accelerated particularly after its accession to the WTO in 2001. China's joining the WTO has to do with its considerable change of bank management and banking industry. These changes have intensified competition among banks to the extent of inducing liquidations or forced mergers of less competitive banks. In this vein, this paper analyzes the characteristics of China's financial reform and measures and comparatively analyzes the banking efficiency of China in order to examine the outcome of China's bank reform and banking competitiveness and draw up measures for overcoming weaknesses in banking efficiency. This paper uses the stochastic econometric frontier approach (SEFA) to measure banking efficiency. Data were collected from the 2006 financial reports of 15 banks in China. The following shows the outcome of China's bank reforms, evaluated by the efficiency of Chinese banks: First, The average economy of scale of banks in China measured 1.0756 shows that the efficiencies gained from economies of scale are great in China. Second, the average economy of scale among the biggest banks, of which assets are above $100 billion, is 1.0881 for China indicates that Chinese banks may improve productivity through expansion in asset size from the benefits of economies of scale. Third, Chinese banks have the relatively higher average rate of inefficiency at 28.89%. The reason why the technical efficiency of Chinese banks is relatively low stems primarily from NPLs and excessive employment at state-owned banks. Fourth, the technical efficiency examined through the groups of assets scale, shows that the most inefficient group is assets scale of $30 billion ~ $50 billion for China. On the other hand, the most efficient groups are small banks, of which assets are less than $30 billion, for China (21.19%). In order for the most inefficient banks in China in the future, therefore, it is seemingly necessary for them either to be developed into a niche market, which is specialized in a certain area and service, by slimming down its scale.