It’s not magic, it’s not created out of thin air. They are simply lending what people have deposited with them.
In fact, they can’t lend more than 90% of what has been deposited. It’s called fractional reserve banking, and it has always been so. The appearance of money creation arises when the 90% that’s been borrowed is paid into another bank, and 90% of that amount is lent out. And so on. There’s nothing new, it’s how the banking system has always worked, just that there’s more of it. Fuelled by the central banks, who DO borrow money into existence.
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