Adam Smith and banking regulation

"Such regulations may, no doubt, be considered as in some respect a violation of natural liberty. But those exertions of the natural liberty of a few individuals, which might endanger the security of the whole society, are, and ought to be, restrained by the laws of all governments; of the most free, as well as or the most despotical. The obligation of building party walls, in order to prevent the communication of fire, is a violation of natural liberty, exactly of the same kind with the regulations of the banking trade which are here proposed." -- Adam Smith, on the need for banking regulations.

This is rather do-my-homeworkish, but what regulations or types of regulations did Smith favor?

Quote thanks to eftychia.

"Literary fiction"

In a recent post, I raised the question of whether there were writers with good prose who hated literary fiction, which leads to questions about what people mean when they talk about literary fiction.

From one angle we get How Fiction Works, a book I've only read about half of, and whose title seems overoptimistic. Still, it gives some history of where we got our ideas about what literature ought to be-- for example, that there should be highly detailed visual description, or that characters should change in the course of the book, and offers evidence of highly esteemed fiction which doesn't follow the rules.

From another angle, there's the popular idea of literary fiction-- a pseudo-story of elaborately description of nothing happening. I think it's only in recent years, maybe a decade or so, that the stereotype came to include an adulterous male professor as the main character. I've heard that no literary fiction featuring that main character has been found,

Anyone know of research on the popular idea of literary fiction?