BTW, what I wrote earlier about fractional reserve banking can be found in wikipedia too (even if not in all details): https://en.wikipedia.org/wiki/Fractional-reserve_banking#C...

Criticisms of textbook descriptions of the monetary system

A paper published in the Bank of England's Quarterly Bulletin states "While the money multiplier theory can be a useful way of introducing money and banking in economic textbooks, it is not an accurate description of how money is created in reality."^[27]

Glenn Stevens, governor of the Reserve Bank of Australia, said of the "money multiplier", "most practitioners find it to be a pretty unsatisfactory description of how the monetary and credit system actually works." ^[28]

Lord Adair Turner, formerly the UK's chief financial regulator, said "Banks do not, as too many textbooks still suggest, take deposits of existing money from savers and lend it out to borrowers: they create credit and money ex nihilo – extending a loan to the borrower and simultaneously crediting the borrower’s money account".^[29]

Former Deputy Governor of the Bank of Canada William White said "Some decades ago, the academic literature would have emphasized the importance of the reserves supplied by the central bank to the banking system, and the implications (via the money multiplier) for the growth of money and credit. Today, it is more broadly understood that no industrial country conducts policy in this way under normal circumstances." ^[30]