Banks can create dollars in the sense that they can synthesize contracts to deliver dollars. These contracts are liquid enough that they are considered equivalent to cash, and in many cases superior (as I describe above).
There is absolutely nothing stopping an institution from accepting deposits of ETH, and then lending those ETH out by crediting other account holders with more ETH in their account. And it is equally possible to imagine that some vendors might prefer to receive their ETH payments as credits to their bank accounts, and thus the IOUs represented by these deposits become "ETH" in the same sense that bank deposits become "dollars".
But here we are strictly discussing the underlying specie. If account holders in a dollar bank demand their payment in specie, the bank is exposed to that risk. This risk is small but significant for modern banks because the credit market for dollars is very liquid, so they can easily sell loans for their present value to increase their cash exposure, and thus make good on the demands for specie.
The credit market for ETH is all but nonexistent except in very specific cases (basically just margin for exchanges) so an ETH bank would be extremely exposed to the risk of a run, and given the level of volatility and general deflationary trend in ETH it would be almost impossible to set a value on future ETH.
There is absolutely nothing stopping an institution from accepting deposits of ETH, and then lending those ETH out by crediting other account holders with more ETH in their account. And it is equally possible to imagine that some vendors might prefer to receive their ETH payments as credits to their bank accounts, and thus the IOUs represented by these deposits become "ETH" in the same sense that bank deposits become "dollars".
But here we are strictly discussing the underlying specie. If account holders in a dollar bank demand their payment in specie, the bank is exposed to that risk. This risk is small but significant for modern banks because the credit market for dollars is very liquid, so they can easily sell loans for their present value to increase their cash exposure, and thus make good on the demands for specie.
The credit market for ETH is all but nonexistent except in very specific cases (basically just margin for exchanges) so an ETH bank would be extremely exposed to the risk of a run, and given the level of volatility and general deflationary trend in ETH it would be almost impossible to set a value on future ETH.