Before revision: Commercial bank money is created through fractional-reserve banking, the banking practise where banks keep only a fraction of their deposits in reserve ( as cash and other highly liquid assets) and lend out the remainder, while maintaining the simultaneous obligation to redeem all these deposits upon demand .The Bank Credit Analysis Handbook: A Guide for Analysts, Bankers, and Investors by Jonathan Golin.
After revision: Commercial bank money is created by commercial banks whose reserves (held as cash and other highly liquid assets) typically constitute only a fraction of their deposits, while the banks maintain an obligation to redeem all these deposits upon demand .The Bank Credit Analysis Handbook: A Guide for Analysts, Bankers, and Investors by Jonathan Golin.