---
entity_slug: bank_economic_efficiency_factors
evaluator: null
evaluated_at: '2026-02-23T00:39:00.301671'
overall_score: 2.6
scores:
- name: definition_precision
  value: 2.0
  max_value: 5.0
  rationale: The definition is quite vague and umbrella-like, listing broad categories
    ("operational practices, technology adoption, market competition") without clearly
    delineating what specifically constitutes these efficiency factors. It reads more
    like a general description of business efficiency rather than capturing a distinct,
    well-bounded concept.
- name: source_grounding
  value: 3.0
  max_value: 5.0
  rationale: While Smith does discuss banking practices and their effects on economic
    efficiency in Book II, Chapter 2, the framing as "efficiency factors" with modern
    terminology like "technology adoption" appears to impose contemporary business
    analysis concepts onto Smith's 18th-century discussion. The core idea has some
    textual basis but the conceptualization seems modernized.
- name: domain_placement
  value: 4.0
  max_value: 5.0
  rationale: The "Accumulation" domain is appropriate since Book II, Chapter 2 deals
    with how banking practices affect capital accumulation and economic growth. Banking
    efficiency directly relates to how effectively capital is mobilized and allocated
    in the economy.
- name: vsm_relevance
  value: 2.0
  max_value: 5.0
  rationale: This entity is too abstract and multi-faceted to map clearly to specific
    VSM systems - it could touch on S1 (operations), S3 (regulation), or S4 (adaptation)
    depending on which "factors" are emphasized. The broad, umbrella nature makes
    it VSM-neutral rather than providing clear systemic insight.
- name: explanatory_value
  value: 2.0
  max_value: 5.0
  rationale: The entity merely names a collection of factors without illuminating
    specific mechanisms or structural relations that Smith identifies. It doesn't
    explain how these factors work or interact, making it more of a surface categorization
    than a concept with genuine explanatory power about banking's role in economic
    development.
---

# Evaluation: Bank Economic Efficiency Factors

## definition_precision — 2.0 / 5.0

The definition is quite vague and umbrella-like, listing broad categories ("operational practices, technology adoption, market competition") without clearly delineating what specifically constitutes these efficiency factors. It reads more like a general description of business efficiency rather than capturing a distinct, well-bounded concept.

## source_grounding — 3.0 / 5.0

While Smith does discuss banking practices and their effects on economic efficiency in Book II, Chapter 2, the framing as "efficiency factors" with modern terminology like "technology adoption" appears to impose contemporary business analysis concepts onto Smith's 18th-century discussion. The core idea has some textual basis but the conceptualization seems modernized.

## domain_placement — 4.0 / 5.0

The "Accumulation" domain is appropriate since Book II, Chapter 2 deals with how banking practices affect capital accumulation and economic growth. Banking efficiency directly relates to how effectively capital is mobilized and allocated in the economy.

## vsm_relevance — 2.0 / 5.0

This entity is too abstract and multi-faceted to map clearly to specific VSM systems - it could touch on S1 (operations), S3 (regulation), or S4 (adaptation) depending on which "factors" are emphasized. The broad, umbrella nature makes it VSM-neutral rather than providing clear systemic insight.

## explanatory_value — 2.0 / 5.0

The entity merely names a collection of factors without illuminating specific mechanisms or structural relations that Smith identifies. It doesn't explain how these factors work or interact, making it more of a surface categorization than a concept with genuine explanatory power about banking's role in economic development.
