This is where it’s important to get pedantic about the technical details of what precisely we mean by “money” and “lending”. If money only refers to cash in vau

This is where it’s important to get pedantic about the technical details of what precisely we mean by “money” and “lending”. If money only refers to cash in vaults or reserves at the Fed, then a commercial bank loan doesn’t create money. But it does create a claim on money, which is (more or less) perfectly convertible to money on demand and thus all economic agents treat it as money. In theory a bank could create an infinite amount of money claims, at least up to the point where nobody wants any more at the interest rate offered. However, the bank is also subject to capital requirements which determine how much risk it can take relative to the amount of equity it has (this used to be called the “reserve ratio” but that is an outdated concept).