Banks create money through lending - the Bank of England explains money creation

[Goberfish]

[video=youtube;CvRAqR2pAgw]https://www.youtube.com/watch?v=CvRAqR2pAgw[/video]

It's a common misconception that banks lend out the money that other entities leave with them, and/or they multiply up the amount of reserves given to them by their central bank.

This video from the United Kingdom's central bank explains how things really work, while also going into how quantitative easing doesn't really represent free money for private banks.