Explore

GCSE

A-Level

BTEC, T-Level, IB, WJEC

More for students

Shop

Cinema revision workshops

Online courses

Revision livestreams

Examiner AI

Personal tuition
Subjects

Biology

Business

Criminology

Early Childhood Development

Economics

Geography

Health & Social Care

History

Law

Politics

Psychology

Sociology

Quick links

Shop

CPD courses & events

Find an interim teacher

Jobs board

Examiner AI

Student events & courses

Cinema revision workshops

Online student courses

Revision livestreams
Examiner AI
Shop

Sign in

Topic Videos

How do commercial banks create credit?

Level:: A-Level, IB Diploma

Board:: AQA, Edexcel, Eduqas, IB, OCR, WJEC

Last updated 21 Mar 2021

Share this content:

Old-fashioned textbooks are wrong! Banks create credit by extending loans to businesses and households – pure and simple! They do not necessarily need to first attract the savings deposits of customers. This short revision video looks at bank lending and some background data on commercial bank loans and overdrafts in the UK in recent years.

How do commercial banks create credit?

Share this content:

You might also like

Micro & Macro Effects of Increased Banking Competition | A-Level Economics Revision

30th May 2025

How Contestability Affects Efficiency in Banking | Edexcel Essay Plan

Exam Support

Household Debt Crisis? The UK’s £2 Trillion Problem Explained

7th March 2025

Differences between banks and building societies

Study Notes

HSBC's Big Split: A Bold Move to Tackle Global Tensions and Boost Profits

22nd October 2024

Financial Economics - Revolut finally secures a UK banking licence

25th July 2024

In the News Teaching Activity – Nationwide is planning to takeover Virgin Money (Mar 2024)

14th March 2024

Financial Times - Bank Failures in 2023

27th December 2023