Commercial banks create money when they issue loans by promising to pay, and the state, through the central bank, ultimately enables this money creation system.

“In practice, the bank does something incredibly simple. It picks up a computer keyboard and if you ask for £10,000, it will go £10,000 in your loan account, £10,000 in your current account, one of those is a debit, one is a credit, you don't need to know which.”