There is nothing more central to economic activity than banks. Our pay cheques are deposited to bank accounts. The great majority of our spending and bill paying consists of the money in our bank accounts being transferred to the bank accounts of various retailers, service providers, utility companies, municipal tax offices, mortgage lenders, land lords, and others. And all those retailers and service providers and others are constantly transferring money from their bank accounts to various suppliers and staff. Physical money is rapidly becoming obsolete. So, almost all economic activity involves banks.
It therefore seems wise to have some understanding of how banks work.
To that end, I have updated my article on how banks make money in their deposit and lending operations. I also added real-life figures for Canadian Western Bank.