Here are some references to my main assertion that reserve requirements don't limit a bank's ability to loan, instead capital requirements are the limiting factor.
Another good source from digi_owl: http://www.bankofengland.co.uk/publications/Documents/quarte...
and finally this: http://www.forbes.com/sites/francescoppola/2014/01/21/banks-...
> No, we are borrowing from each other in the present.
Not according to the Bank of England.
> The central business problem for retail banks is how to earn more from deposits than they pay in interest, and to do so at a scale of billions of dollars.
Far from it. They are not deposit constrained, no matter how much mainstream economics likes to think so.
See page 2 onwards, "money creation in reality". And note that this is published by the Bank of England.