It is not logical that banks can print money

There are no contradictions and everything is logical apart from where banking and deposit insurance is concerned. It would not be logical for lending institutions (banks) to be able to increase the money supply since counterfeiting is illegal. (It would only be logical for the government to be able to print money.) Since we expect money to be valuable (and clearly if it can be printed privately it will cease to be so) then it is natural to expect that no one (apart from the government) can print money. Since money is valuable it would be weird for 'banks' to be able to print it... and yet they can which is seemingly illogical. Everything is logical except for money and the banking sector... at the present time in history.