It's factually correct. Deposits are created and then converted into the required capital at a price. To buy equity you need to use a deposit, and that comes fr

It's factually correct. Deposits are created and then converted into the required capital at a price. To buy equity you need to use a deposit, and that comes from a prior loan. That's just how it works. Same with liquidity which is just increased amounts of loans to the central bank (government) in the form of government bonds. Collateral uplift can give you that. All these just add to the cost of the bank, which changes the price and that reduces the number of people taking the loans. But the fact remains that the quantity floats at the current price of money. Liquidity and capital requirements just change the current price of money.