Zero reserve rate does not mean no practical limitation on money creation. Banks can 'create money' on accounts of their clients (as these accounts represent j

Zero reserve rate does not mean no practical limitation on money creation. Banks can 'create money' on accounts of their clients (as these accounts represent just obligations of the bank to their clients). But once created, if clients want to use these money outside of the bank (say to pay for a service to someone who has account in another bank), then bank must move equal amount of 'base money' to another bank (or to give cash). If a bank have balanced inflows and outflows of base money, then it can 'create money' in the same pace as other banks in order to stay balanced (if it 'creates money' faster than other banks, then outflows would rise faster than inflows, and the bank has to sell some assets to compenstate).