while this is true, they also have to do a lot more management of capital than most and it's a very delicate balancing act. Already, you have issues with bank confidence and normal people getting fleeced by fradulent or overly risky financial products because of the government's interventions in banking.
Japan used to be activist towards in its banks too, and it was very good until it was catastrophic one day.
The existence of overly risky products is something observed in Western banking as well. And a catastrophe caused by the banking system is not unheard of in the USA. So I don't see how this is a problem unique to China. In fact they have much more flexibility to solve issues in this area.