Human-Geographical Factors of Financial Infrastructure Development in the Western Region of Ukraine

Abstract

The article provides a brief analysis of socio-geographical factors that have a decisive influence on the formation of financial infrastructure in the Western region of Ukraine. Traditional and innovative factors that are stimulating and limiting are highlighted. Among the main factors, emphasis is placed on geographical location, historical and geographical features, economic and geographical, socio-geographical, international cooperation and investment flows. The development of the financial network is not only under the influence of regional factors, but also in line with national and global trends. Despite the fact that the financial infrastructure of the state began to form with independence in 1991, and in the Western region the first prototype network of financial infrastructure began to form in the XVII century, today it is still in its infancy. However, this makes it possible to build the financial infrastructure in accordance with today’s challenges. For the sake of balanced development it is necessary to take into account the factors that not only promote development, but also inhibit it. The financial infrastructure is characterized by significant diversification, so special attention is paid to the factors that are inherent in each component. Banking, credit infrastructure and the infrastructure of mutual investment institutions are more developed in contrast to other components. Socio-geographical factors affect each individually and together, thus showing a synergistic effect. The peculiarity of these factors is also their multiplier effect, which is traced in the chain changes during the transformation of the factor itself. The geographical location of the region has a positive impact on the development of financial infrastructure, which is reflected in the developed network of international and national transport corridors, which provides trade growth, as well as strong international, including cross-border, cooperation in many sectors.

Geospatial features of the banking infrastructure of the Western region of Ukraine

“…6) with bank branches and ATMs of all types is typical for the population of Lviv region. This uneven distribution is caused by the uneven socio-economic level in the regional districts (Kachmaryk, 2018). At the same time, this figure is also the highest per 1 thousand km 2 (more than 37 ATMs per 1 thousand km 2 ).…”