"In the modern economy, most money takes the form of bank deposits. But
how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money. The reality of how money is created today differs from the description found in some economics textbooks: • Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits."
(Emphasis BankOfEngland), Money Creation in the Modern Economy, 2014
The 14 page PDF is attached