“Broadly speaking, at present, the money-creating sector covers UK banks and building societies, whereas the money-holding sector consists of UK households and private companies.”

Bank of England, Proposals to modify the measurement of broad money in the United Kingdom p.402 

“In the United Kingdom, money is endogenous—the Bank supplies base money on demand at its prevailing interest rate, and broad money is created by the banking system”

Bank of England, 1994, Q3 Quarterly Bulletin, p.264 

“The money-creating sector in the United Kingdom consists of resident banks (including the Bank of England) and building societies”

Bank of England, Proposals to modify the measurement of broad money in the United Kingdom, p.405 

“changes in the money stock [i.e. the total amount of money in the economy] primarily reflect developments in bank lending as new deposits are created.”

Bank of England, Interpreting movements in broad money, p.378 

 “Given the near identity of deposits and bank lending, Money and Credit are often used almost inseparably, even interchangeably…”

Paul Tucker, Deputy Governor for Financial Stability, Bank of Engalnd. Speech: ‘Money and Credit: Banking and the Macroeconomy’ 

“...the banking sector plays such an important role in the creation of money. Changes in the terms for deposits will affect the demand for money, while changes in the terms for loans will affect the amount of bank lending and hence money supply.”

Bank of England, Interpreting movements in broad money, p.383 

“Money-creating organisations issue liabilities that are treated as media of exchange by others.  The rest of the economy can be referred to as money holders”

Bank of England, Proposals to modify the measurement of broad money in the United Kingdom, p.402 

 And if you need further proof, here’s a letter written by a correspondent of ours to the Bank of England (see the original here). He asked them:

“When a commercial bank makes a loan to a borrower, does the commercial bank in effect create new money? In other words, when a bank makes a loan to a borrower, is that ‘money’ just created out of thin air?”

And the Bank of England response was:

“When banks make loans, commercial banks do indeed create much of the money in the economy.”

“At the beginning of the 20th (century) almost the totality of retail payments were made in central bank money. Over time, this monopoly came to be shared with commercial banks, when deposits and their transfer via checks and giros became widely accepted. Banknotes and commercial bank money became fully interchangeable payment media that customers could use according to their needs.”

[cite]Tommaso Padoa-Schioppa, then Member of the Executive Board, European Central Bank. Speech: ‘Domestic payments in Euroland: commercial and central bank money’ [/cite]

“Commercial banks create money through the extension of bank credit.”

(Bundesbank (2011), Geld und Geldpolitik, p72 

“This paper contends that the emphasis on policy-induced changes in deposits is misplaced. If anything, the process actually works in reverse, with loans driving deposits. In particular, it is argued that the concept of the money multiplier is flawed and uninformative in terms of analyzing the dynamics of bank lending. Under a fiat money standard and liberalized financial system, there is no exogenous constraint on the supply of credit except through regulatory capital requirements. An adequately capitalized banking system can always fulfill the demand for loans if it wishes to.”

Piti Distayat and Claudio Bori, Bank for International Settlements (2009) 

“It is argued by some that financial institutions would be free to instantly transform their loans from the central bank into credit to the non-financial sector. This fits into the old theoretical view about the credit multiplier according to which the sequence of money creation goes from the primary liquidity created by central banks to total money supply created by banks via their credit decisions. In reality the sequence works more in the opposite direction with banks taking first their credit decisions and then looking for the necessary funding and reserves of central bank money.”

Vitor Constancio, vice president of the ECB (2011) 

“The actual process of money creation takes place primarily in banks.”

Federal Reserve Bank of Chicago (1992) Modern Money Mechanics 

“In the real world, banks extend credit, creating deposits in the process , and look for the reserves later.”

Alan Holmes, then Senior Vice President, Federal Reserve Bank of New York (1969) 

“Each and every time a bank makes a loan, new bank credit is created – new deposits – brand new money.”

Graham Towers (1939), former Governor of the Central Bank of Canada, quoted in Rowbotham, M (1998) The Grip of Death, p.12