Banks lend by creating a financial asset (say a mortgage) and the creating an advance against that. Reassigning that advance to another person is how we pay fo

Banks lend by creating a financial asset (say a mortgage) and the creating an advance against that. Reassigning that advance to another person is how we pay for things with borrowed money. Once it has been reassigned it called a deposit. https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2014/money-creation-in-the-modern-economy.pdf https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...