<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->

# Bank Economic Resilience Factors

## Definition

The various elements that contribute to banking resilience, including capital adequacy, liquidity management, and risk management practices. These factors affect banking ability to withstand economic shocks.

## Source Chapter

Book II, Chapter 2

## Context

Smith analyses various factors affecting banking resilience, showing how these elements contribute to banking ability to withstand economic stress and maintain essential functions.

## Economic Domain

Regulation

---
