Banks create money when they make loans (fractional-reserve-banking-is-how-money-is-printed), but they don’t create the interest on the loan. In fact, they are owed it.
The lendee needs to create the interest to pay back to the bank. this is the embedded growth obligation. (This growth both draws down our natural capital and creates externalities that aren’t included in our prices.)
Additionally, there is now new purchasing power out there in the world, which is a potential future claim on energy and resources.
see: ref_508-nate-hagens-the-worlds-coming-energy-catastrophe_nate-hagens_modern-wisdom