You are right. Another common misconception is that banks are limited by they reserves in the quantity of money that they can "create". Banks search for reserv

You are right. Another common misconception is that banks are limited by they reserves in the quantity of money that they can "create". Banks search for reserves after finding customers to lend. If they are not able to find it in the interbank market, they always can go to the central bank. It's by manipulating that rate that the central bank have some control in how "hot" the economy is. If the central bank wants to cool the economy it will make money more expensive to the private banks. Selling bonds to the private banks have also this effect. It's the responsibility of private banks to grant that the new created credit is used in solid business. If there are not demand for credit or there are not solid business, never mind how much reserves there are in the system.