66 lines
3.5 KiB
Markdown
66 lines
3.5 KiB
Markdown
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---
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entity_slug: bank_systemic_risk
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evaluator: null
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evaluated_at: '2026-02-23T04:37:10.567719'
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overall_score: 4.0
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scores:
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- name: definition_precision
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value: 4.0
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max_value: 5.0
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rationale: The definition clearly captures the concept of contagion risk in banking
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systems - how problems spread from individual institutions to the entire system.
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It's precise and non-circular, though it could be slightly more specific about
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the mechanisms of spread.
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- name: source_grounding
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value: 3.0
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max_value: 5.0
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rationale: While Smith does discuss banking problems and their broader economic
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effects in Book II, Chapter 2, the modern term "systemic risk" and its technical
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framing may impose contemporary financial theory concepts that weren't explicitly
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articulated in Smith's original analysis. Smith focuses more on individual bank
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failures and their local effects.
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- name: domain_placement
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value: 5.0
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max_value: 5.0
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rationale: The "Regulation" domain is perfectly appropriate for systemic risk, as
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this concept is fundamentally about the need for oversight and management of system-wide
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vulnerabilities. This is precisely the type of concern that drives regulatory
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frameworks.
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- name: vsm_relevance
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value: 4.0
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max_value: 5.0
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rationale: This entity maps well to S3 (internal regulation/audit) as it represents
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a control concern that requires monitoring and management of system-wide stability.
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It also has relevance to S4 (intelligence) as it involves detecting and responding
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to emerging threats to system viability.
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- name: explanatory_value
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value: 4.0
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max_value: 5.0
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rationale: The concept provides genuine explanatory power by illuminating how individual
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bank problems can cascade through interconnected financial networks, explaining
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a key structural vulnerability in banking systems. It goes beyond surface description
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to identify an important systemic mechanism.
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---
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# Evaluation: Bank Systemic Risk
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## definition_precision — 4.0 / 5.0
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The definition clearly captures the concept of contagion risk in banking systems - how problems spread from individual institutions to the entire system. It's precise and non-circular, though it could be slightly more specific about the mechanisms of spread.
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## source_grounding — 3.0 / 5.0
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While Smith does discuss banking problems and their broader economic effects in Book II, Chapter 2, the modern term "systemic risk" and its technical framing may impose contemporary financial theory concepts that weren't explicitly articulated in Smith's original analysis. Smith focuses more on individual bank failures and their local effects.
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## domain_placement — 5.0 / 5.0
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The "Regulation" domain is perfectly appropriate for systemic risk, as this concept is fundamentally about the need for oversight and management of system-wide vulnerabilities. This is precisely the type of concern that drives regulatory frameworks.
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## vsm_relevance — 4.0 / 5.0
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This entity maps well to S3 (internal regulation/audit) as it represents a control concern that requires monitoring and management of system-wide stability. It also has relevance to S4 (intelligence) as it involves detecting and responding to emerging threats to system viability.
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## explanatory_value — 4.0 / 5.0
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The concept provides genuine explanatory power by illuminating how individual bank problems can cascade through interconnected financial networks, explaining a key structural vulnerability in banking systems. It goes beyond surface description to identify an important systemic mechanism.
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