What we have written is true, and easily verified. That fact is equally true, and easily verified as well. The qualifier is important. It is what people assume about money that makes modern banking possible. The Federal Reserve itself points out that it is the people's confidence that make paper devices serve for money.
Psychology is everything.
If modern money is an illusion, then bank failures are an important means of reinforcing that illusion. Consider the alternative. People would question how the bank could continue to thrive despite so many bad loans. Some might wonder why the bank would not honor checks written on insufficient funds, if the banks create those funds from nothing. Corporations which are unable to meet their financial obligations to banks might wonder why they must work to repay the bank for something it got with a flick of a loan officer's pen.