Why banks can not be sued for false advertising ?
I’m not saying it’s right or wrong, I’m just saying that’s how it works, and everyone should know that, because it’s not a secret.
It's unfair to blame people for blaming the banks on this, because the banks get a disproportionate benefit from this kind of system, and most people in modern society have no choice but to rely on banking systems. Again, a person avoiding banking systems is scrutinized as backwards and ignorant, but then folks turn around and shame people for not being aware of how the banks truly work. It may not be a secret, but it's far from common knowledge.
Words have real meaning, and it’s important to use the right words.
It isn't, except that ... I would suggest you go and poll your close family and social network and see how many people actually understand that bit.
It certainly isn't the first sentence on the "please open an account with us" pamphlet.
This is mostly wrong in modern economies. In Denmark you are not able to to buy a car with cash (Yor are legally required to use banks when transacting more than DKK 20.000, ~USD 2.700).
This has promoted the banking system to nation critical infrastructure, and the money in the bank is not a representation of "paper money". It is the money.
* There is no "lending" risk by depositing your money, only the currency risk (government insured deposits) * Banks provide critical infrastructure to transfer funds mandated to be used by the government. * It is even called deposits when you add money to you account, not a loan. * In Denmark we, still, have negative interests on deposits (at -0.6%, also for consumers) -- lending out is mandated to cost interests as in the tax authorities will force me to add interests at ~2.5% when I give a loan to somebody.
All in all, depositing money in a modern bank should not be seen as providing a loan.