No, they don't do that because "they have been lent out" makes no sense. You give them money and then you are a creditor of the bank. There is no special place

No, they don't do that because "they have been lent out" makes no sense. You give them money and then you are a creditor of the bank. There is no special place for "your" money, ie "they" isn't a thing. It's just a giant bucket of money they now have. Of course they need the money to fund loans. The money lent by banks doesn't come out of thin air. The bank has some equity (A) contributed by the shareholders and they borrow money (B). They can lend out A+B. That's it. They borrow it from several places, and the cheapest, stickiest way to borrow it is deposits. There is no magic in banking. No money comes from the sky. The second you think "money is being created" you are going down the wrong path from an understanding perspective. When people who actually know what they are talking about say "money is created" they have a different definition of "money" than you do.