[esja]

"depositors lend their money to a bank, for which they are paid interest, and banks lend that money out"

... isn't how banking actually works.

https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...

[sramsay]

Yeah, it's the "and banks lend that money out" part that is wrong, and it's why banking is way, way more complex than people realize. There's a lot of "it's all very simple" going around (here and elsewhere). It is not simple.