[edzillion]

What you are stating was perhaps the previous orthodoxy, but in the last few years even major institutions[1] have come to agree that banks do indeed create money when they create certain kinds of loans; the upshot of which is that 90%+ of money in circulation in western countries has been created through mortgage issuance.

[1] The Bank of England: Money creation in the modern economy https://www.bankofengland.co.uk/quarterly-bulletin/2014/q1/m...