But that is addressing a very different point. That bank lending is not limited strictly by deposits does not imply banks don't need any capital or that they do not rely on low cost deposits as a source of capital. Goldman-Sachs is selling CD notes, FDIC insured CD notes, precisely to raise capital.  Those deposits are a source of cash which can then be turned into other assets.

Do you think McKinsey is just making it up? Do you think that Citibank has $1trillion in notes just sitting in a vault?