A comparative study of performance indicators between public and private banks in a rentier economy

The income that has been acquired mostly through selling natural resources, not economic activities, is called Renting. This kind of income has undesirable effects and consequences, such as low efficiency. Efficiency is about increasing quantity and quality of products and has an important role in economic growth and development of developed countries. In this article, first, a short overview on the concept of renting and its effects on economy of countries and efficiency is illustrated. Then performance of public and private banks are compared in a case study, assuming that public banks have access to renting. the efficiency of banking operations in public and private banks are also considered using the x index. This comparative analysis reveals that private banks do better in terms of efficiency and efficiency growth.