Some people, when presented information about how our monetary system works, become concerned about where the supply of money for interest payments could possibly come from. 

Since starting to look into the nature of our monetary system, there is one particular argument I have heard played out time and time again: On one side we have: “Banks can create money out of nothing. They do not need to have somebody’s savings in hand in order to make a loan”. On the other side we have: “Banking regulations dictate that banks are only allowed to lend out a fraction of their depositors money”.