From a bank's perspective, a loan is an investment/asset, so should probably be a part of what is called M2 or M3 money. EDIT: Wikipedia seems to agree: https:

From a bank's perspective, a loan is an investment/asset, so should probably be a part of what is called M2 or M3 money. EDIT: Wikipedia seems to agree: https://en.wikipedia.org/wiki/Money_supply#Fractional-reserve_banking https://en.wikipedia.org/wiki/Money_supply#Fractional-reserv... > Whenever a bank gives out a loan in a fractional-reserve banking system, a new sum of money is created. This new type of money is what makes up the non-M0 components in the M1-M3 statistics.