THE EFF？C？ENCY OF BANK？NG SECTOR ？N TURKEY: NONPARAMETR？C COND？T？ONAL APPROACH BASED ON PART？AL FRONT？ER

Abstract This paper focuses on nonparametric efficiency analysis based on robust estimation of Partial Frontiers. A nonparametric estimator is proposed achieving strong consistency and asymptotic normality. In this context, the main aim of this paper is how changed efficiency score of this sector in this period. So, the paper analysed 17 different banks with 1999 to 2016 period in the Turkish banking sector. Overall, it does show us that the Turkish banking sector focused on output-oriented efficiency from 1999 to 2016.This result is supported by m-order and super-efficiency firms scores. Then, output-oriented and hyper-oriented are so close fluctuated together. This show that Turkish banking sector was focused output efficiency more than input efficiency. The efficiency score of the Turkish banking sector are moderate for the period covered (0.6≥α≥0.4)