banks are also subject to regulations when issuing loans and no - it's not the fractional reserve system in many sovereigns, like the USA the reserve requirements sit at 0% there are other regulatory requirements limiting loan issuance
the bank has the legal right to increase the money supply AKA 'print money' so to give you a $100 loan the bank can just create those $100 and give give them to you pretty neat arrangement, huh? ๐