Latvia: Financial institutions development, efficiency

The latest value from 2021 is 0.556 index points, an increase from 0.533 index points in 2020. In comparison, the world average is 0.585 index points, based on data from 178 countries. Historically, the average for Latvia from 1993 to 2021 is 0.476 index points. The minimum value, 0.185 index points, was reached in 1993 while the maximum of 0.627 index points was recorded in 2007. See the global rankings for that indicator or use the country comparator to compare trends over time.

Definition: Measures the efficiency of financial institutions. Constructed using the Principal Component methodology using the following variables: Net interest margin, Lending-deposits spread, Non-interest income to total income, Overhead costs to total assets, Return on assets, and Return on equity. See Svirydzenka, Katsiaryna (IMF, 2016) for more detail.