Financial freedom is an indicator of banking efficiency as well as a measure of independence from government control and interference in the financial sector. State ownership of banks and other financial institutions such as insurers and capital markets reduces competition and generally lowers the level of access to credit. The index score 0-100 (best)s an economy’s financial freedom by looking at five broad areas: 1) the extent of government regulation of financial services, 2) the degree of state intervention in banks and other financial firms through direct and indirect ownership, 3) government influence on the allocation of credit, 4) the extent of financial and capital market development, and 5) openness to foreign competition. An overall score 0-100 (best) on a scale of 0 to 100 is given to an economy’s financial freedom through deductions from the ideal score 0-100 (best) of 100. This is a Composite Index (i.e. aggregating multiple sources)