4 ms·
> they are giving you their money They create that money by crediting your checking account (their liability) and debiting your loan account (their asset).
by zrail 8y ago
> they are giving you their money
They create that money by crediting your checking account (their liability) and debiting your loan account (their asset).
- jussij 8y agoBut you missing one step where they credit your loan account by debiting their loan book account. Also your loan account is not a bank asset, it is a bank liability. It is money the bank might not get back.