Nigeria, Sept. 8 -- The Responsibility for Money Creation and Lessons from Oxford University

Introduction

In our increasingly digitised economic landscape, banks have evolved far beyond their traditional roles as mere custodians or facilitators of funds. Today, they sit at the epicentre of modern money creation, wielding a power and responsibility that significantly shapes financial stability, economic prosperity, and, most times, the very pulse of society itself. This article explores the three principal theories of banking - financial intermediation, fractional reserve banking, and credit creation - while emphasising the profound truth: banks are the true creators of money in contemporary economies. Drawing from insights garnered duri...