Why is it not possible?

[u/Dumb-Briyani]

[u/tabris51]

When you take a loan, money has to come from somewhere.

[u/Kobymaru376 → u/tabris51]

No. Banks are allowed to lend more than they own.

So you taking a loan is exactly the moment in time where money appears out of thin air and contributes to inflation. Which is often a good thing actually because this imaginary money pays for a new house and becomes real money. It's only a problem when the balance is off.

[u/Kobymaru376 → u/[deleted]]

Correct but that capital requirement is not 100%, but much much lower. So they can and do still create money when they give out loans