Why do people still stick to the idea of FRB if it had died so many years ago? FRB is no longer relevant, not with a centralized banking system based on fiat. This is a common misconception that banks lend money out of deposits from I don't know how many years ago. It can be said that banks can create money right out of thin air, they don't need deposits for that. There is indeed a limit on how much credit banks can create, but this limit in most cases doesn't depend on how much money they have in deposits. In some countries, there are no reserve requirements for banks at all, though this doesn't mean that they can create unlimited credit, of course. The system today works in a completely different manner than some 100 years ago, but people are still mostly unaware of it and repeat the same old garbage about FRB.