I have vague memories of
I have vague memories of watching the Positive Money videos some years ago and I’m sure they mentioned that banks would borrow from other banks in order to maintain the minimum amount they are required to hold by law. For example, if after all the transactions from the day have been cleared, the new money created from loans, and the money destroyed by people making repayments, if they don’t meet the 10% reserve requirement (or whatever) they’d be forced to borrow from other banks. Even the Wikipedia article (https://en.wikipedia.org/wiki/Money_creation ) says :“Because of this money creation process by the commercial banks, the money supply of a country is usually a multiple larger than the money issued by the central bank” I dont think these newspaper articles with quotes talking about banks having to borrow from other banks disprove anything. No one disputes that. The banks borrow in order to meet their reserve requirements. The question is whether the money supply is expanded and contracted by private businesses/individuals taking out and repaying loans from commercial banks. It sounds to me like it is and I think the ECB article backs me up on this.