The other banks can only create the money they lend. .

Not so, they create money when they spend as well, except that this spent money becomes the object of an (undated) demand deposit in the recipient's current account.

What happens with the (dated) loan is that the money is created, deposited and then instantaneously lent via what is essentially a repo of virtual (fiat 'look-alike') cash.

I find it useful to distinguish between dated and undated deposits.

Banks must always balance - in aggregate - dated (term-even overnight) deposits and dated (loan) assets.

Undated demand deposits (reserves) which are held by banks at the Central Bank are reflected in the balance sheet by:

(a) the (undated) ownership claim of the banks equity capital; and

(b) the (undated) claim of demand depositors in respect of their current account balances.

"The future is already here -- it's just not very evenly distributed" William Gibson