Bank reserves have little to do with money creation:
> Lord Adair Turner, formerly the UK's chief financial regulator, said "Banks do not, as too many textbooks still suggest, take deposits of existing money from savers and lend it out to borrowers: they create credit and money ex nihilo (out of nothing) – extending a loan to the borrower and simultaneously crediting the borrower’s money account
> the German central bank explains that the money supply is not determined by the reserves of private banks, but by market factors and regulatory decisions.
> Lord Adair Turner, formerly the UK's chief financial regulator, said "Banks do not, as too many textbooks still suggest, take deposits of existing money from savers and lend it out to borrowers: they create credit and money ex nihilo (out of nothing) – extending a loan to the borrower and simultaneously crediting the borrower’s money account
> the German central bank explains that the money supply is not determined by the reserves of private banks, but by market factors and regulatory decisions.
https://en.wikipedia.org/wiki/Fractional-reserve_banking#Cri...