This is largely correct. Commercial banks are permitted to leverage deposits (Tier 1 capital) by a large ratio. If a bank lends $10 for every $1 of capital re

This is largely correct. Commercial banks are permitted to leverage deposits (Tier 1 capital) by a large ratio. If a bank lends $10 for every $1 of capital reserves, it will have a capital leverage ratio of 1/10 = 10%. According to the Basel III standards, this ratio must be at least 3%, though country-wise regulations may vary. https://www.wallstreetmojo.com/leverage-ratios-for-banks/ https://www.wallstreetmojo.com/leverage-ratios-for-banks/ But money is also created in other ways. Here is a short article on how money creation, value creation and wealth creation are related: https://nickrogers.tech/money-creation-wealth-creation-value-creation https://nickrogers.tech/money-creation-wealth-creation-value... Cheers!