The double entry book keeping operation when a bank issues a new loan, is [debit loan, credit deposit account] creating deposit money. When a loan is securitze

The double entry book keeping operation when a bank issues a new loan, is [debit loan, credit deposit account] creating deposit money. When a loan is securitzed (sold) by the bank, the DBE operations are: [credit loan, debit deposit account of purchaser] and the purchaser now owns loan. At this point strictly money has been removed from the banking system, but in practice the bank then recreates that money with a new loan (as above) because they are now within their regulatory lending requirements, and can issue a new loan. They can continue this indefinitely until the market for securitized loans dries up, which is effectively what happened in 2008.