---
entity_slug: bank_regulatory_framework_evolution
evaluator: null
evaluated_at: '2026-02-23T00:49:29.640481'
overall_score: 3.2
scores:
- name: definition_precision
  value: 3.0
  max_value: 5.0
  rationale: The definition captures a coherent concept about regulatory change over
    time, but uses somewhat vague language like "often in response to" and "changing
    understanding" that could be more precise. It's not circular but could better
    specify what constitutes "evolution" versus mere change.
- name: source_grounding
  value: 2.0
  max_value: 5.0
  rationale: While Smith does discuss banking regulation in Book II, Chapter 2, the
    framing of "evolutionary framework" and "historical development" may impose a
    more systematic developmental narrative than Smith actually presents. Smith tends
    to analyze specific regulatory examples rather than theorizing about regulatory
    evolution as a process.
- name: domain_placement
  value: 4.0
  max_value: 5.0
  rationale: '"Regulation" is an appropriate domain for this concept, as it clearly
    deals with governmental and institutional oversight of banking rather than pure
    market mechanisms or monetary theory. The placement accurately reflects the regulatory
    nature of the content.'
- name: vsm_relevance
  value: 4.0
  max_value: 5.0
  rationale: This entity maps well to S3 (internal regulation/audit) as it deals with
    regulatory oversight mechanisms, and potentially to S4 (intelligence/adaptation)
    since regulatory evolution involves adapting to environmental changes like financial
    crises. The concept has clear VSM relevance rather than being abstractly neutral.
- name: explanatory_value
  value: 3.0
  max_value: 5.0
  rationale: The entity provides moderate explanatory value by highlighting how regulatory
    responses adapt to crises and changing conditions, revealing a feedback mechanism
    between banking problems and regulatory solutions. However, it remains somewhat
    descriptive of the phenomenon rather than deeply illuminating the underlying structural
    dynamics.
---

# Evaluation: Bank Regulatory Framework Evolution

## definition_precision — 3.0 / 5.0

The definition captures a coherent concept about regulatory change over time, but uses somewhat vague language like "often in response to" and "changing understanding" that could be more precise. It's not circular but could better specify what constitutes "evolution" versus mere change.

## source_grounding — 2.0 / 5.0

While Smith does discuss banking regulation in Book II, Chapter 2, the framing of "evolutionary framework" and "historical development" may impose a more systematic developmental narrative than Smith actually presents. Smith tends to analyze specific regulatory examples rather than theorizing about regulatory evolution as a process.

## domain_placement — 4.0 / 5.0

"Regulation" is an appropriate domain for this concept, as it clearly deals with governmental and institutional oversight of banking rather than pure market mechanisms or monetary theory. The placement accurately reflects the regulatory nature of the content.

## vsm_relevance — 4.0 / 5.0

This entity maps well to S3 (internal regulation/audit) as it deals with regulatory oversight mechanisms, and potentially to S4 (intelligence/adaptation) since regulatory evolution involves adapting to environmental changes like financial crises. The concept has clear VSM relevance rather than being abstractly neutral.

## explanatory_value — 3.0 / 5.0

The entity provides moderate explanatory value by highlighting how regulatory responses adapt to crises and changing conditions, revealing a feedback mechanism between banking problems and regulatory solutions. However, it remains somewhat descriptive of the phenomenon rather than deeply illuminating the underlying structural dynamics.
