[sdhgaiojfsa]

The "liquidity requirements" you refer to are the fraction in "fractional-reserve." If I deposit $1, and then the bank's capital requirements are 75%, and they lend out $0.75, the total amount of money is now $1.75. This is what people are referring to when they say banks create money.

[spiralx]

Banks "create" money by making loans, but those loans aren't made from other deposits. A bank with a 10% requirement that has $100,000 in reserves can loan $1,000,000 to somebody even though they don't have that much deposited there.