Not much more to it than that. Why is it the world’s end when a government prints money but fine when a banking system does it?
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Firstly, I am not aware that the world has ended as your initial comment suggests. Big if true, lol.
All banks create money, from the Federal Reserve down to the branch bank in your community. Anyone who says commercial banks don’t create (i.e. print) money is simply wrong.
However, not all money has the same impact on inflation. We have several different measures of money in economics for this reason, you can do a google search for M0, M1, and M2 if you wish to learn more. The money the Fed creates directly is called the Monetary Base, though another nickname is “High Powered Money”.
Put simply, banks can print money into your account but cannot print into their own account at the Fed. But the money in the Fed account directly regulates how much they can print into your account. This is because we have pretty strict rules on just how fractional banks can be, they need to keep a certain percentage of the assets as cash in their Fed account. Central bank money printing is like the little domino in that meme, and that is by design.
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