Well, actually, no ... :)

They do lend out deposited money but really waaay the majority of the money is created out of thin air, as debt + interest.
As jfeenstra has explained so well, fractional reserve banking is the trick that lets them do this. And they don't even follow the rules for this like they should.

And government don't generally really print it .. they create it by borrowing it in the same way as we do as individuals ... as debt+interest.

The way money is created in this way (as debt + interest, by private profit-driven banks) is a fundamental source of imbalance and injustice in our world.
We are obliged to chase this debt-money in order to survive in our society as things stand. We spend significant amounts of our time doing things in order to get it.
Imagine what would happen if we had no access to money - it is not an exaggeration to say that we would die cold and hungry - as indeed do people who do not have any, or access to someone who does.

Our society-level agreement to recognise money as a holder of value, and a proof-of-work, is what makes it function. We agree that it represents our energy, thus the creation of privately-controlled debt-money in this way is a gross theft of our energy and enslaves us.

It doesn't have to be like this and our salvation is much supported by the emergence of crypto-currency and the likes of Steem and BitCoin. We agree that Steem has value, we create it with our work, with our energy. There is no debt involved. It is equitable and fair. It is beautiful.

If anyone wants more complete and authoritative analysis of this important issue, I offer again the link to Positive Money. These guys really know their subject, and are making waves here in the UK with the understanding of this profoundly important subject.

Love and Peace.