The purpose of the research - to propose a new methodology that allows to compare liberality or dirigisme of the banking sector across countries.
The methodology of the research – throughout the research, methodologies including IL(R)E which is proposed by the Institute of Economics of Ministry of Science and Education of Azerbaijan Republic, analysis, comparison and etc. were used.
The practical importance of the research – policymakers of central banks can use the results of this study during decision making to make more optimal decisions. Moreover, researchers may use the proposed methodology to prepare detailed report for their future study.
The results of the research - this research introduces an entirely new index - an economic model that covers features of the reserve requirements and allows researchers to evaluate the extent of public intervention in the commercial banking sector universally.
The originality and scientific novelty of the research - topic of this study is to identify countries with more liberal and dirigiste policy on one of the main regulatory tools – reserve requirements which negatively affects banking system income globally.
Keywords: leftness, rightness, public intervention, banking sector regulation, reserve requirements, indexing.