Banks can't lend out more than they take in.
“Banks can’t lend out more than they take in.”
On what planet?
“Fractional-reserve banking (or FRB) is the widespread banking practice in which only a fraction of a bank’s demand deposits are kept in reserve and available for immediate withdrawal (as cash and other highly liquid assets), whilst the remaining cash is lent out to borrowers (and so is never actually available for immediate withdrawal to legitimate deposit-holders).[1][2][3][4] The bank in effect lends out most or even all of the funds it receives in demand deposits, whilst at the same time guaranteeing that all deposits are available for immediate withdrawal upon demand. Fractional reserve banking is currently legal and practiced by all commercial banks.
The practice of fractional reserve banking expands credit and therefore also expands the money supply (demand deposits and cash) beyond what it would otherwise be in a stable money system. Due to the prevalence of fractional reserve banking, the broad money supply (deposits created via the issuance of loans plus cash) is a much larger multiple than the amount of “real” paper currency created by the country’s central bank. That multiple (called the money multiplier) is determined by the reserve requirement or other financial ratio requirements imposed by financial regulators, and by the excess reserves kept by commercial banks.
In legal terms, instead of a deposit being considered a bailment contract with the bank being the custodian of the funds deposited as trustee for the depositor with fiduciary duties not to embezzle or misappropriate the funds, banks since the 19th century have been allowed to consider the deposit (available for immediate withdrawal) “their money”, and they are able to do with the money as they wish, provided they recognize the deposit as a general liability on their books of account.[5] In the current legal regime, the depositor no longer “owns” any money when the deposit is made. The depositor is merely an unsecured creditor, relying on the central bank to bail out the bank should a bank run occur, with no further recourse against the bank.”
http://wiki.mises.org/wiki/Fractional_reserve_banking