22 lines
649 B
Markdown
22 lines
649 B
Markdown
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
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# Bank Credit Allocation
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## Definition
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The process by which banks decide which borrowers and projects to finance, affecting the allocation of capital throughout the economy. Efficient credit allocation enhances economic development and productivity.
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## Source Chapter
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Book II, Chapter 2
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## Context
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Smith examines how banks allocate credit and its effects on economic development, showing how efficient credit allocation can significantly enhance economic productivity and growth.
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## Economic Domain
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Accumulation
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---
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