The funny thing is that people who think that fractional reserve banking and money multiplier is a fraud will think that the reality of banking is even more of

The funny thing is that people who think that fractional reserve banking and money multiplier is a fraud will think that the reality of banking is even more of a fraud. >Banks first decide how much to lend depending on the profitable lending opportunities available to them — which will, crucially, depend on the interest rate set by the Bank of England. It is these lending decisions that determine how many bank deposits are created by the banking system. The amount of bank deposits in turn influences how much central bank money banks want to hold in reserve (to meet withdrawals by the public, make payments to other banks, or meet regulatory liquidity requirements), which is then, in normal times, supplied on demand by the Bank of England.