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How does the banking system work in fiat currency?

2026

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🏦 So if you deposit 10,000 into the bank The banks sets aside 10% or $1000 and then loans out the rest of your money. The way it works is say another person comes into the bank and asks for a car loan of 9,000 at this moment the bank loans out the 9,000 from your original deposit it isn't there anymore the borrower then pays the person selling the car and they go to deposit the money into another bank which is part of the same central banking system this 9,000 is treated as a new deposit and the process continues. The money gets redeposited and reloaned until the initial deposit of ten thousand dollars becomes 100,000 the banking system just created 90,000 dollars by loaning out your money! 🤷🏽‍♂️💰 But if regular person do this? They call it a "Ponzi scheme" and send that person to jail! 🤷🏽‍♂️⚖️