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# Bank Financial Innovation

## Definition

The development of new banking practices and instruments, such as cash accounts and improved methods of bill discounting, that increase the efficiency and utility of banking services. These innovations can significantly enhance economic development.

## Source Chapter

Book II, Chapter 2

## Context

Smith discusses various banking innovations, particularly those developed in Scotland, that improved the efficiency of banking services. He shows how these innovations increased the utility of banking for merchants and contributed to economic development.

## Economic Domain

Accumulation

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