Banks do borrow money from the central bank occasionally, though mostly they just sell government bonds to the central bank in exchange for money. The general

Banks do borrow money from the central bank occasionally, though mostly they just sell government bonds to the central bank in exchange for money. The general thrust of what you're saying is correct, though: If you want to understand how money enters the circulation among the general public, you absolutely have to look at banks. The central bank and the government have almost nothing to do with it outside of their regulatory function.