That’s called the ‘money multiplier model’, it’s an incorrect model that doesn’t actually describe how any modern bank works. It’s basically a myth at this poin

That’s called the ‘money multiplier model’, it’s an incorrect model that doesn’t actually describe how any modern bank works. It’s basically a myth at this point. I’m not confusing anything. Believe it or not, banks actually have to follow double entry accounting rules, and follow regulations about capital adequacy. Most countries don’t even have a reserve requirement, deposits generally don’t factor into lending at all.