To a degree that makes sense, but it doesn't pan out quite like that in actual practice. Like any other business banks have operating expenses. They pay out wages, they have to buy supplies and materials, and most savings accounts earn a certain amount of interest that the bank pays out.
The way it actually works looks more like this:
You put your money into The 1st National Bank of TRS into your account, as do a few hundred other people. Now Weezl comes along and wants to buy a house, he needs a loan. The bank loans him money which effectively comes from the money that the rest of us have deposited (although your account ledger doesn't show it). The bank charges him 5% and keeps 4% for their own accounts and to pay their own bills.( Atually, they charge him...let me back up a little....first: they multiply the cost of weezl's loan times the # 3....THEN weezl gets to pay for his house... Payroll, utilities, office supplies, etc. Then they take the top off the 100,004$ that they MADE off weezl's loan--use 10,000$ of it to pay business expenses---ink pens/t-shirts/give aways/etc.---then they pay the Fed 10,000$ for extortion fees---another 10,000$ for bribes---another 10,000$ for ads during football games....then they take the other 70% of the profit & use it for bonuses/more bribes/ parties/meetings in Haaa-why-eeeee/more bonuses. The other 1% is divided up among the rest of us who have put money int the bank into our accounts in the form of interest paid to us on our savings balances. Exactly!
There is some other part of this that involves them having to send so much money back to the Federal Reserve every so often, but I never really understood that part, so I can't explain it(extortion money...remeber that). Think that had more to do with the prof's heavy accent than anything though. It was something about controlling the money supply and inflation(actually, it was more about controlling the destiny of the people, whilst sendin our nation to Hell in a Handbasket(i didn't cuss--I was using a Biblical phrase about a physical place).
Or at least that is how the whole thing was explained to me in Econ.(yep...that's how it was explained to me in collage too...then I went to the UV/University of VietNam....after graduating, I then attended UB/University of my friend the banking president...who broke down the whole Program wherin I couldst understand it/but he dident use King James English..)