Alice is a customer of ABank Bob is a customer of BBank. Alice asks ABank for a $100 loan at 10% interest to buy some fidgets from Bob Bob asks BBank a $100 at

Alice is a customer of ABank Bob is a customer of BBank. Alice asks ABank for a $100 loan at 10% interest to buy some fidgets from Bob Bob asks BBank a $100 at 10% interest to buy some doodads from Alice ABank creates a $100 credit line for Alice, and creates an asset of $110 future revenue payments. BBank creates a $100 credit line for Bob, and creates an asset of $110 future revenue payments. Bob and Alice make their deals each paying with their respective debit cards. ABank and BBank settle their transactions with a net 0 transfer. Alice and Bob both repay $100 to their outstanding loan. Both ABank and BBank now own $10 in future revenue from Alice and Bob respectively. You can argue that 'technically' ABank and BBank didn't 'create' the money, they merely created the legally backed first row claim to that money that will be created.