REVIEW OF APPROACHES TO THE DEFINITION OF THE ESSENCE OF THE CONCEPT OF "FINANCIAL POTENTIAL OF THE REGION"

The financial potential is a key indicator of the economic sustainability of a region, its ability to develop infrastructure, improve the quality of life of the population and implement strategic objectives within the framework of the national financial policy. Its effective use and management is a prerequisite for reducing the financial dependence of regions on state subsidies, especially in the context of the post-war economic recovery of Ukraine. The main objective of this study is to theoretically summarise and clarify the content of the concept of “financial potential of a region”. The article considers the theoretical foundations and evolution of the concept of “financial potential of a region”. It analyses scientific approaches to its interpretation, identifies main components and factors that influence its formation and use. It has been determined that the financial potential of a region is a complex economic category that combines resource, functional and strategic aspects, reflecting the ability of the region to accumulate, distribute and efficiently use financial resources to ensure sustainable socio-economic development. The article studies the etymology and historical development of the term, which allowed to substantiate its relationship with the general economic concepts of “potential” and “resources”. The key characteristics of the financial potential of a region are determined, in particular, its dynamism, dependence on the level of development of entrepreneurship, budget system, investment activity and financial and credit mechanisms. It is found that scholars interpret financial potential as a set of financial resources available and potentially mobilised within the region, which are formed from internal and external sources and ensure the financial viability of the territory. The author's definition of the financial potential of a region as an integrated characteristic that reflects the capabilities of the financial system of the region to attract, distribute and efficiently use financial resources in order to achieve balanced economic growth and improve the welfare of the population is proposed.