22 lines
682 B
Markdown
22 lines
682 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 Financial Intermediation Efficiency
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## Definition
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The effectiveness with which banks channel funds from savers to borrowers while minimising costs and risks. High efficiency in financial intermediation 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 analyses how efficient financial intermediation by banks enhances economic development, showing how reducing intermediation costs can significantly improve capital allocation and economic productivity.
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## Economic Domain
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Accumulation
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---
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