The banks are doing it anyway.
Every heard of the term "bank money" ?
Here's another source confirming that FACT :
Why Banks Don't Need Your Money to Make Loans
BY MATTHEW JOHNSTON, Updated Jul 6, 2019
" ... KEY TAKEAWAYS
- Banks are thought of as financial intermediaries that connect savers and borrowers.
- However, banks actually rely on a fractional reserve banking system whereby banks can lend in excess of the amount of actual deposits on hand.
- This leads to a money multiplier effect. If, for example, the amount of reserves held by a bank is 10%, then loans can multiply money by up to 10x.
...
Banks in the Real World
In todays modern economy most money takes the form of deposits, but rather than being created by a group of savers entrusting the bank withholding their money, deposits are actually created when banks extend credit (i.e., create new loans).
As Joseph Schumpeter once wrote,It is much more realistic to say that the banks 'create credit,' that is,that they create deposits in their act of lending
than to say that they lend the deposits that have been entrusted to them.
When a bank makes a loan, there are two corresponding entries that are made on its balance sheet,one on the assets side and one on the liabilities side.
The loan counts as an asset to the bank and it is simultaneously offset by a newly created deposit, which is a liability of the bank to the depositor holder.
Contrary to the story described above, loans actually create deposits.
Now, this may seem a bit shocking since, if loans create deposits, private banks are creators of money.
But you might be asking,"Isnt the creation of money the central banks sole right and responsibility ?"
Well, if you believe that the reserve requirement is a binding constraint on banks ability to lend then yes, in a certain way banks cannot create money without the central bank either relaxing the reserve requirement or increasing the number of reserves in the banking system.
The truth, however, is thatthe reserve requirement does not act as a binding constraint on banks ability to lend
and consequently their ability to create money.
The reality is that banks first extend loans and then look for the required reserves later. Perhaps a few statements from some notable sources will help to convince you of that fact.
Alan Holmes, a former senior vice president of the New York Federal Reserve Bank, wrote in 1969,in the real world banks extend credit, creating deposits in the process, and look for the reserves later.
Vítor Constâncio, Vice-President of the European Central Bank (ECB), in a speech given in December 2011, argued,In reality, the sequence works more in the opposite direction with banks taking first their credit decisions
and then looking for the necessary funding and reserves of central bank money.
Fractional reserve banking is effective, but can also fail.
During a "bank run," depositors all at once demand their money,which exceeds the amount of reserves on hand, leading to a potential bank failure. ..."
Then there's this little bit of additional information on a separate issue with the USA Banks and the Federal Reserve funding the Banks every night from Friday night Sept 20, 2019 until Oct 10, 2019 from $1.8 TRILLION to $2.2 TRILLION .
So WHAT THE HELL IS THE REASON FOR THE FED NEEDING TO DO THIS ?
The Fed, Banks Printing Money to "Prevent" Trouble: Recession WILL Come Soon ( 8:48 )
Published on Sep 24, 2019
Glenn Beck Glenn discusses the current state of the economy with author of "Zero Hour," Harry Dent.
He says the federal reserve is still funding big banks daily to increase their excess reserve, signaling that something is wrong with the system.
Dent says the banks printed money back in the 1930s to climb out of the Great Depression, which only created an aftershock that was even worse.
Banks and the Fed are doing the same thing today, so will the coming economic crisis be worse than the 2008 recession ?
Economist Dent says it's possible, and that it could come as early as 2020.