Comparison between LETS and Mainstream Banking Services

In LETS the currency only arises when a transaction has occurred and the central administration simply provides the service of transferring points between the accounts of the members (including itself): the commitment to repay by providing a service for another member is a relationship between the member and the other members in the scheme collectively, whereas
In Mainstream Banking, transactions between the current accounts of customers are an entirely separate matter from the creation of credit, which is carried out by the bank, building society or credit-card company itself, in a separate transaction with each customer. If the customer defaults, the lending institution can take possession of his assets, as in bankruptcy and repossession of a mortgaged property. The illustration below demonstrates in a simplified way the complex process which answers the question "where does money come from?".