Banks offer to loan to create more money, only to offer it again for someone in need to create even more money! Well honestly, I view banks as middlemen for the wealthy investors wanting to create more money and for the average people wanting to borrow some money in order to grow their own. Banks only officiate the loan, creates terms for it, and impose an interest rate on top of the loaned money. That interest would then go to the bank after the money is returned. Banks need to do this in order to profit, and it is simply a business, that's why no bank has ever given the masses free money because like us, they need to earn something.
Very well explained sir, banks do those things in able to earn more money. They make loans on people so that it would gain profit in long term and they uses the money of the bank depositors itself especially to those big holders. Bank wouldnt exist after all if they dont do those things.