The textbook story, savers deposit, banks lend the money out, is wrong. As the Bank of England states plainly in its 2014 paper *Money creation in the modern economy*, most money is created by commercial banks making loans. When a bank approves a mortgage it does not move someone else's savings; it simultaneously writes a new asset (your loan) and a new liability (a deposit in your account) onto its own balance sheet. That deposit is new money. Around 97% of the money the public holds is bank deposits, not notes and coins, so this is how almost all money comes into being.