Deposit insurance is completely unnecessary

An institution which can print money is not a bank but there are institutions on the high street with banking licences which give the appearance of banks... which people assume are banks partly because they perform the role of custodian. Banks must also not increase the money supply. Being able to pretend to be a bank is of great advantage to these institutions because it makes people less suspicious. If they are not banks and can make loans in spite of having deposit insurance then they are causing inflation. If to cause inflation and not be the government is criminal then for these institutions not to be banks (or the government) is criminal. It is only because they are part of the state that it is allowed. Private institutions can't print money but what most people regard as banks are not private institutions which means that they are printing money without people knowing about it. People assume banks are private but they have deposit insurance.