Well pretty much everything is regulated by the government but banks still create money. As for reserves, have you, or anyone you know with a good credit recor

Well pretty much everything is regulated by the government but banks still create money. As for reserves, have you, or anyone you know with a good credit record, ever applied for a loan and gotten told, "We would like to lend you money, but we are all out of money to lend due to reserve requirements. Can you check back in next week?" That doesn't happen. The bank creates the money and deals with reserve requirements later.