Banks cannot legally print money

Despite the fact there have been no arrests it is a crime to counterfeit the currency and increase the money supply. The only exception to this rule is that the government can print money. An organisation such as a commercial bank with private assets is not the government and so cannot legally print money. Only the government can legally print money and so the banks are breaking the law when they practice (guaranteed) fractional-reserve banking. If frb is not guaranteed by the government and banks can fail this is not counterfeiting. It could be considered to be fraudulent but it is not counterfeiting because it does not increase the money supply. Banks are only committing a crime if they have deposit insurance and are guaranteed. Fractional-reserve banking is a crime unless the bank is not guaranteed by the government and can fail. If there is deposit insurance then frb is a crime. It is a crime for banks to increase the money supply.