This indicator evaluates the robustness and
operational efficiency of a nation's financial sector, encompassing its institutional framework, regulatory environment, and policy effectiveness. It assesses how well financial institutions
contribute to economic stability and growth, by examining elements such as governance, market access, and risk management practices. The rating reflects the degree to which the financial system supports inclusive access to banking services, investment opportunities, and credit availability for diverse sectors, including small and medium-sized enterprises. Additionally, it considers the sector's resilience to external shocks and its ability to foster economic innovation, making it essential for understanding the overall economic landscape and potential growth trajectories.
Source: