markitect-main/examples/infospace-with-history/output/entities/bank-financial-intermediation-efficiency.md

Bank Financial Intermediation Efficiency

Definition

The effectiveness with which banks channel funds from savers to borrowers while minimising costs and risks. High efficiency in financial intermediation enhances economic development and productivity.

Source Chapter

Book II, Chapter 2

Context

Smith analyses how efficient financial intermediation by banks enhances economic development, showing how reducing intermediation costs can significantly improve capital allocation and economic productivity.

Economic Domain

Accumulation

---