Strength of legal rights index (0=weak to 12=strong)

This index evaluates the effectiveness of legal frameworks that safeguard the rights of borrowers and lenders, thereby influencing the overall lending environment. By assessing the robustness of collateral and bankruptcy laws, the index provides insights into how well these regulations enable access to credit. Scores range from 0 to 12, with higher values signifying a more favorable legal context that fosters trust between financial institutions and borrowers. A strong legal rights system not only reduces risks for lenders but also encourages borrowing among individuals and businesses, ultimately fostering economic growth and stability. Thus, a higher rating indicates enhanced potential for credit expansion and financial inclusivity within the economy. Source: