"It is not by augmenting the capital of the country, but by rendering a greater part of that capital active and productive than would otherwise be so, that the most judicious operations of banking can increase the industry of the country"

Adam Smith's quote is highlighting the significance of making capital efficient in order to increase the market of a nation. He is recommending that it is insufficient to just increase the amount of capital readily available, however that it is necessary to make sure that capital is actively being utilized to its max potential. This implies that banks ought to be sensible in their operations, guaranteeing that capital is being used to its max potential. This might include offering loans to services, investing in infrastructure, or providing other monetary services that can help organizations grow and prosper. By doing this, banks can help to increase the industry of a country, resulting in higher financial development and prosperity.