When the banks loan out ten million dollars in mortgages and are required to hold only one million dollars of their assets in reserve - where do you think that other nine million dollars comes from?
If the mortgages were "fully funded" then the bank would already have given out ten million dollars of their own money to those borrowers and in that case why would any money have to be held in reserve? To cover what? They have already covered any possible mortgage defaults and are themselves in no danger of going bankrupt. Only the loans where 90% of the loan's value is created out thin are subject to the reserve requirement. Do you really not know this?
You really should read The Creature From Jekyll Island and then follow up with your own research in cases where you disagree with the author.
When the banks loan out ten million dollars in mortgages and are required to hold only one million dollars of their assets in reserve - where do you think that other nine million dollars comes from? For your example to make sense, the bank would need over $11 million in deposits in order to loan $10 million and hold reserves of their deposits of 10%.
Only the loans where 90% of the loan's value is created out thin are subject to the reserve requirement.
Commercial Banks don't create money out of thin air.
Only central banks can do that.
You really should read The Creature From Jekyll Island
I started it.
The silly errors early in the book showed it was a waste of time to continue.