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Who creates money? Central banks or commercial banks? 
A central bank typically introduces new money into the system by printing new money to purchase items from member banks.  The central bank can purchase whatever it chooses.  It typically purchases government bonds but the Federal Reserve purchased mortgage-backed-securities (MBS) during the 2008 panic since the FED was the only one willing to pay full price for MBS after the crash of 2008. The bank, upon receipt of the new money, can loan the money out.  A minimum reserve ratio specifies how much money the bank has to keep on hand.  A reserve ratio of 10% means the bank must have $10 for every $100 in loans. As an example, let's say the FED prints up some new money to purchase some office desks from a member bank.  It prints $10,000 to purchase some desks.  The bank receives $10,000.  It can create up to $100,000 in loans without exceeding the 10% minimum reserve ratio requirement.   How would it do so?  A customer would come to the bank asking for a $100,000 loan.  The bank would create an account for the customer and credit $100,000 to the customer's account.  There is a problem, however.  The customer borrowed the money to buy a boat so the customer writes a check for $100,000 to the boat company.  The boat company attempts to deposit the $100,000 check into the boat company's bank.  The boat company's bank will ask the originating bank for $100,000 in cash.  The originating bank only has $10,000 in cash on hand so this demand will immediately bankrupt the originating bank. So what actually happens?  The originating bank actually only loans out reserves * (1 - minimum reserve ratio) so it can meet demands for the loans it originates.   In our example the bank that received the initial $10,000 from the FED will only loan out $10,000 * (1-0.1) = $9,000.  This allows the bank to cover checks written by the person who borrowed the $9,000.  The reserve ratio for the bank is now $1,000/$9,000 which is 11% and is over the minimum reserve requirement.  The borrower makes a purchase with the borrowed $9,000 and the seller deposits the $9,000 in his bank.  The bank that receives that $9,000 now has an additional $9,000 in reserves which it will use to create loans of $9,000 * (1 - 0.1) = $8100.   This continual fractional reserve money creation process will continue across the entire banking system resulting in $100,000 of new money created from $10,000. This process is explained very well here.