Is money mostly created (out of nothing) by banks making loans? In the Bank of England's Quarterly Bulletin, 2014 Q1, McLeay, Radia, &amp; Thomas write a pair of articles titled:

&quot;Money in the modern economy: an introduction&quot; and
&quot;Money creation in the modern economy&quot;.

I believe they subscribe to what Werner (2014) calls the credit creation theory of banking. From their Overview:

In the modern economy, most money takes the form of bank deposits. But how those bank deposits are created is often misunderstood: the principal way is through commercial banks making loans. Whenever a bank makes a loan, it simultaneously creates a matching deposit in the borrower’s bank account, thereby creating new money.
The reality of how money is created today differs from the description found in some economics textbooks:
• Rather than banks receiving deposits when households save and then lending them out, bank lending creates deposits.
• In normal times, the central bank does not fix the amount of money in circulation, nor is central bank money ‘multiplied up’ into more loans and deposits.

These two articles were published in the BoE's Quarterly Bulletin, so I had initially assumed that what they were saying was the mainstream/widely-accepted/orthodox view. On further reading (e.g. of Werner, 2014), I discovered though that this might not be so and am now slightly confused as to what, if any, the mainstream view is.
My main question is this: Is the above description of money creation largely accurate?
Follow-up questions: Does this description differ from what is written in most textbooks and academic papers and books? (And if so, why? Is it because the above description is a relatively recent development? Or the above description has been true for a long time now, but has simply not been incorporated into textbooks and economists' models?)
The monetary base (MB) contains what might be called &quot;public money creation&quot;, Notes and coins in circulation (outside Federal Reserve Banks and the vaults of depository institutions), Notes and coins in bank vaults (vault cash), and Federal Reserve Bank credit (required reserves and excess reserves not physically present in banks). The broadest available government measured US monetary measure is M2, which does not contain all the elements of MB, but still is an approximation of the total of private and public money creation, which includes currency, plus time, savings, and demand deposit accounts. So, what is MB/M2? What fraction of money is created by the government of the total?

FRED: (Monetary Base; Total)/(M2 Money Stock*1000)
The answer is less than half. Crudely, money is mostly privately created in the US. The &quot;out of nothing&quot; aspect of your question is more complex. In my personal view, and I guess that's only an opinion, is that because banks are government regulated and insured institutions, forced to back each loan with reserves, and regulated to have capital for each of those loans, they cannot really be said to make this private money out of nothing.