How banks create money (with your money)

I didn't want to get into fractional reserve banking & reserve requirements, I just wanted to share what I learned about money creation. But to answer your question... it's called a bank run! When a bank (in the USA) doesn't have enough money to cover withdrawals, the bank fails & the government shuts it down.

You can read up on a recent example with Silicon Valley Bank: https://www.law.uw.edu/news-events/news/2023/svb-collapse