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infospace: process book-2-chapter-02

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Extract entities, map to VSM, and synthesize analysis.
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
# Bank Liquidity Management
## Definition
The practices by which banks maintain sufficient ready assets to meet demands for note redemption and other obligations while maximising their ability to provide credit. Effective liquidity management is crucial for banking stability.
## Source Chapter
Book II, Chapter 2
## Context
Smith analyses how banks must manage their liquidity to meet demands while maintaining profitability. He shows how liquidity management affects bank stability and the broader economy, particularly during periods of financial stress.
## Economic Domain
Regulation
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