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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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Bernd Worsch
2026-02-19 19:43:19 +01:00
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<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
# Bank Capital Adequacy
## Definition
The sufficiency of a bank's capital relative to its risks and obligations, which determines its ability to absorb losses and maintain operations during periods of stress. Adequate capital is essential for banking stability.
## Source Chapter
Book II, Chapter 2
## Context
Smith examines the importance of adequate capital for banking stability, showing how insufficient capital can lead to bank failure and broader economic disruption. He analyses the relationship between capital, risk, and stability.
## Economic Domain
Regulation
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