In the millions of transactions made each year like those above, little actual currency changes hands, nor is it necessary that it do so.  95% of all "cash" transactions in the U.S. are by check, so the Banker is perfectly safe in "creating" that so-called "loan" by writing the check or deposit slip, not against actual money, but AGAINST YOUR PROMISE TO PAY IT BACK!  The cost to him is paper, ink and a few dollars in salaries and office costs for each transaction.  It is "check-kiting" on an enormous scale.  The profits increase rapidly, year after year, as shown below.