---
entity_slug: bank_financial_stability_metrics
evaluator: null
evaluated_at: '2026-02-23T00:41:51.431624'
overall_score: 2.4
scores:
- name: definition_precision
  value: 2.0
  max_value: 5.0
  rationale: The definition lists modern banking metrics (capital adequacy ratios,
    liquidity coverage ratios, stress tests) that are anachronistic for Smith's era
    and creates a vague umbrella term rather than capturing a distinct concept. The
    circular phrasing "measures used to assess banking stability" that "help evaluate
    banking stability" lacks precision.
- name: source_grounding
  value: 1.0
  max_value: 5.0
  rationale: This entity introduces modern regulatory banking concepts that did not
    exist in Smith's time and are not discussed in Book II, Chapter 2, which focuses
    on the nature and accumulation of stock. Smith's banking analysis lacks the sophisticated
    quantitative metrics described here.
- name: domain_placement
  value: 3.0
  max_value: 5.0
  rationale: While "Regulation" is a reasonable domain for banking oversight concepts,
    the entity would be better placed in a "Banking" or "Financial Systems" domain
    since it focuses on internal bank assessment rather than external regulatory frameworks.
    The domain assignment is defensible but not optimal.
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to VSM System 3 (internal regulation/audit) as
    these metrics represent monitoring and control mechanisms for assessing organizational
    health. The concept of systematic measurement for stability aligns naturally with
    the regulatory/audit function.
- name: explanatory_value
  value: 2.0
  max_value: 5.0
  rationale: While banking stability assessment is conceptually important, this entity
    merely names modern measurement categories without illuminating underlying mechanisms
    or structural relationships that Smith actually explored. It adds little explanatory
    power to understanding Smith's economic framework.
---

# Evaluation: Bank Financial Stability Metrics

## definition_precision — 2.0 / 5.0

The definition lists modern banking metrics (capital adequacy ratios, liquidity coverage ratios, stress tests) that are anachronistic for Smith's era and creates a vague umbrella term rather than capturing a distinct concept. The circular phrasing "measures used to assess banking stability" that "help evaluate banking stability" lacks precision.

## source_grounding — 1.0 / 5.0

This entity introduces modern regulatory banking concepts that did not exist in Smith's time and are not discussed in Book II, Chapter 2, which focuses on the nature and accumulation of stock. Smith's banking analysis lacks the sophisticated quantitative metrics described here.

## domain_placement — 3.0 / 5.0

While "Regulation" is a reasonable domain for banking oversight concepts, the entity would be better placed in a "Banking" or "Financial Systems" domain since it focuses on internal bank assessment rather than external regulatory frameworks. The domain assignment is defensible but not optimal.

## vsm_relevance — 4.0 / 5.0

This entity maps well to VSM System 3 (internal regulation/audit) as these metrics represent monitoring and control mechanisms for assessing organizational health. The concept of systematic measurement for stability aligns naturally with the regulatory/audit function.

## explanatory_value — 2.0 / 5.0

While banking stability assessment is conceptually important, this entity merely names modern measurement categories without illuminating underlying mechanisms or structural relationships that Smith actually explored. It adds little explanatory power to understanding Smith's economic framework.
