aka123

Okay, but this paragraph doesn't count yet. Fractional reserve banking:

Following rules are for demonstrative purposes, as those vary from country to country (currency). The rules are that the bank has to have 20 % reserve. The banking goes like this: regular bank gets 100 units (currency) worth of deposits. According to rules it can lend 80 units, 20 must be in reserve. Bank lends 80 units for some of it's customer. The situation is now that the bank ows 100 units for the depositor(s) and the lender ows 80 units for the bank. 100 units has become to 180 units, aka money has been created. Central banks money creation differs from this as those can literally create the money from thin air. For regular banks the process goes as described, whether it gets the money from depositors or central banks.