[neilwilson]

Banks are factories for money not warehouses.

Reserves are not even required for banks to function.

A loan creates a deposit and that deposit then moves between people as they pay each other.

Banks can do that until they run out of creditworthy borrowers.

All so callled constraints on banks do nothing other than try to increase the price of lending so there are fewer creditworthy borrowers.

There is no quantity restriction that binds. The payment system would collapse if you tried.