22 lines
709 B
Markdown
22 lines
709 B
Markdown
<!-- generated: provider=openrouter model=arcee-ai/trinity-large-preview:free date=2026-02-19 source=book-2-chapter-02 -->
|
|
|
|
# Bank Capital Structure
|
|
|
|
## Definition
|
|
|
|
The division of a bank's capital into fixed capital (buildings, equipment) and circulating capital (reserves, loanable funds). This structure determines a bank's ability to lend and maintain stability.
|
|
|
|
## Source Chapter
|
|
|
|
Book II, Chapter 2
|
|
|
|
## Context
|
|
|
|
Smith analyses how banks must balance their fixed and circulating capital, explaining that the smaller the fixed capital portion, the greater the circulating capital available for loans. He shows how this affects a bank's profitability and stability.
|
|
|
|
## Economic Domain
|
|
|
|
Accumulation
|
|
|
|
---
|