Other McLeay quotes
Of the two types of broad money, bank deposits make up the vast majority — 97% of the amount currently in circulation. And in the modern economy, those bank deposits are mostly created by commercial banks themselves.
“Just as taking out a new loan creates money, the repayment of bank loans destroys money.” ; “Banks making loans and consumers repaying them are the most significant ways in which bank deposits are created and destroyed in the modern economy. But they are far from the only ways. Deposit creation or destruction will also occur anytime the banking sector (including the central bank) buys or sells existing assets from or to consumers, or, more often, from companies or the government.”
“Money today is a form of debt, but a special kind of debt that is accepted as the medium of exchange in the economy. And most of that money takes the form of bank deposits, which are created by commercial banks themselves.”