[baobabKoodaa]

> - Bank starts with $0 capitalisation or deposits - Customer goes to bank and asks for $1 loan - Bank believes customer is creditworthy and says yep

No bank starts out with $0 capitalisation and then makes up money along the way. This has never happened.

> Commercial banks all agree with each other that they accept each other's demand deposit accounts as a form of money.

This is not true either. If a bank is known to have no capital, other banks will refuse to accept transfers from it without immediate settlement.