This paper investigates the cost efficiency of Taiwan's banks by redefining the "reported cost". We argue that because the reported PLL is an accrual item, it fluctuates significantly over time, making the cost also fluctuate. Furthermore, the provision is often decided in a discretionary manner, which is affected by the forbearance policy, sudden regulation changes and more. As a result, reported cost is notorious for its discretionary characteristics. We propose an approach to reduce the fluctuation of reported PLL to the minimum and at the same time fulfill the economic meaning of PLL. That is, we suggest an "economic PLL" to replace the reported PLL to be included in the cost. We found that economic PLL differs substantially from reported PLL. For example, the cost of Chang-Hwa Bank has risen steadily from 19,107 million New Taiwan dollars to 41,389 million New Taiwan dollars, and cost efficiency has degraded from rank 5th to rank 22 th. Results are also consistent with our intuition that the improper estimation of reported cost because of PLL discretion may cause the bias of cost efficiency. Finally, we further specify optimal scale economic as the basis of improving cost efficiency in the future.