Agreed, still it needs some base reserve to not run afoul of regulation - the initial capitalization based on which it could lend out that first loan. Even for

Agreed, still it needs some base reserve to not run afoul of regulation - the initial capitalization based on which it could lend out that first loan. Even for a central bank, the government has to capitalize it first with some amount to kickstart the process so that it can borrow more from it.