---
entity_slug: bank_financial_development
evaluator: null
evaluated_at: '2026-02-23T00:40:23.728762'
overall_score: 4.0
scores:
- name: definition_precision
  value: 3.0
  max_value: 5.0
  rationale: The definition captures a coherent concept about banking evolution and
    improvement, but uses somewhat vague terms like "evolution and improvement" and
    "better support" that could be more precisely specified. The core idea of financial
    intermediation becoming more efficient is clear but could benefit from more concrete
    characterization.
- name: source_grounding
  value: 4.0
  max_value: 5.0
  rationale: Smith does indeed analyze banking development in Book II, Chapter 2,
    examining how banking practices evolve and their effects on economic activity.
    The concept aligns well with Smith's discussion of how banks facilitate commerce
    and capital accumulation through improved practices.
- name: domain_placement
  value: 5.0
  max_value: 5.0
  rationale: Placement in the "Accumulation" domain is highly appropriate since banking
    development directly relates to capital formation and the mechanisms by which
    savings are channeled into productive investment. This fits perfectly with Book
    II's focus on the nature and accumulation of stock.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S4 (intelligence/environmental adaptation) as
    banking development represents the financial system's adaptive response to economic
    needs and opportunities. It also has relevance to S1 as it concerns the operational
    capabilities of primary economic functions.
- name: explanatory_value
  value: 4.0
  max_value: 5.0
  rationale: The entity illuminates an important mechanism by which financial systems
    enhance economic productivity and growth over time. It explains how institutional
    development in banking creates structural improvements in resource allocation
    rather than merely describing surface-level changes.
---

# Evaluation: Bank Financial Development

## definition_precision — 3.0 / 5.0

The definition captures a coherent concept about banking evolution and improvement, but uses somewhat vague terms like "evolution and improvement" and "better support" that could be more precisely specified. The core idea of financial intermediation becoming more efficient is clear but could benefit from more concrete characterization.

## source_grounding — 4.0 / 5.0

Smith does indeed analyze banking development in Book II, Chapter 2, examining how banking practices evolve and their effects on economic activity. The concept aligns well with Smith's discussion of how banks facilitate commerce and capital accumulation through improved practices.

## domain_placement — 5.0 / 5.0

Placement in the "Accumulation" domain is highly appropriate since banking development directly relates to capital formation and the mechanisms by which savings are channeled into productive investment. This fits perfectly with Book II's focus on the nature and accumulation of stock.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S4 (intelligence/environmental adaptation) as banking development represents the financial system's adaptive response to economic needs and opportunities. It also has relevance to S1 as it concerns the operational capabilities of primary economic functions.

## explanatory_value — 4.0 / 5.0

The entity illuminates an important mechanism by which financial systems enhance economic productivity and growth over time. It explains how institutional development in banking creates structural improvements in resource allocation rather than merely describing surface-level changes.
