@f915ade0 The article I linked to was a quick (not necessarily the best) choice... For me responding to your thread, a couple of key points: Banks are specialised institutions empowered by the state to create credit - which is why you cannot lend me £1m because you are not a specialised institution empowered by the state. However, Keen's key point (which appear late on in the article), is provided the loan is 'performing' - the borrower is paying the instalments... 1/2