Financial freedom takes place when government’s action
doesn’t affect financial institutions and the financial sector is free from his
control and interference. In this way the financial sector can operate with independency
and efficiently enforcing contractual operation and preventing fraud, and have
contact with foreign financial institutions.

The level of financial freedom can be evaluated
according to some factors:

–       Government regulation of financial services

–       Collaboration with foreign firms

–       Government influence on allocation of credit

–       development level of financial market

–       government intervention in banks