Geofinance
From Open Risk Manual
Contents
Definition
Geofinance is a composite (portmanteau) word (Geography + Finance) aiming to capture the interplay between geography and the financial organization of economic activity.
The concept encompasses the impact of national borders, geographic location and distance on the shape of banking and insurance entities and associated financial regulation [1]. In turn Geography is a also composite word (Gaia + Graph) indicating the description of the Earth. Hence geofinance primarily concerns the analysis and spatial representation of aspects of financial activity.
Significance
As a concept geofinance enters prominently in both traditional and modern issues and challenges:
- Crossborder Lending and Geopolitical Risk as an enduring concern whenever finance (including insurance) is occurring on a global scale
- Sustainable Finance as the discipline and process of integrating global environmental, social and governance (ESG) criteria into the financial system
- Regional Development and Regional economics
See Also
- Spatial Finance is a more narrow term that is used in particular in the context of Sustainable Finance
- Economic geography
References
- ↑ Speech by S. Woods, Prudential Regulation Authority (UK), Oct 2017