Comment by neilwilson

Loans create deposits, deposits are used to buy bank capital issued by banks.

There’s no hard limits. They are ratios which are preprepared because a bank knows how big its sales pipeline is and that takes time to complete.

Nothing is limited in quantity. Even the silly SLR they have in the US is a pricing limit, not a quantity - as we see every time somebody moans about how much the deficit has gone up.