By Andrew Mackinnon
The Bank of England came out in 2014 and admitted that privately-owned, commercial banks create money out of nothing when they lend to citizens, (non-citizens,) businesses and not-for-profit entities and impose an obligation on them to pay interest on this money created out of nothing:
bankofengland.co.uk/quarterly-bulletin/2014/q1/money-creation-in-the-modern-economy