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

Illya Gerasymchuk 2025-08-05 21:47

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? 😁