31 lines
1 KiB
Markdown
31 lines
1 KiB
Markdown
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---
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entity_slug: bank_credit_allocation
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entity_type: Process
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vsm_system: S3
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type_rationale: Bank Credit Allocation is described as "the process by which banks
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decide which borrowers and projects to finance," clearly indicating an ongoing activity
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with duration rather than a static entity.
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vsm_rationale: This process operates as a management function that controls resource
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allocation by directing capital flows throughout the economy, which is the core
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responsibility of S3 in Beer's model.
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classified_at: '2026-02-23T10:44:44.823553'
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---
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# Classification: Bank Credit Allocation
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## Entity Type
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Process
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## VSM System
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S3
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## Type Rationale
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Bank Credit Allocation is described as "the process by which banks decide which borrowers and projects to finance," clearly indicating an ongoing activity with duration rather than a static entity.
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## VSM Rationale
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This process operates as a management function that controls resource allocation by directing capital flows throughout the economy, which is the core responsibility of S3 in Beer's model.
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