Banks have a pivotal function in the economy, they are the main creators of the money supply. In granting or issuing so called 'loans' to their customers they create the money that is essential to make the modern economy work. In fact says Prof Werner: 'here is no such thing as a bank loan' he says what happens is credit creation, when banks make the money (credit ) needed out of nothing.
He explains how the system works, whereby, from a miniscule deposit of funds a huge amount of money is created.