Banks can print money due to deposit insurance

Deposit insurance has no meaning if it doesn’t mean banks can print money. Government credit is always money. Deposit insurance turns private credit into public credit which is always money. Government credit can be printed by banks.

Even if some inflation is required there is no reason it should come from banks.

There is no reason for banks to be exempt from legislation against counterfeiting. Only non-banks are prevented from causing inflation. Everyone should be able to cause inflation if banks can.