You are right. A bank loan is the borrower's liability and the bank's asset but the deposit resulting from the loan is bank's liability and the owner's asset.

You are right. A bank loan is the borrower's liability and the bank's asset but the deposit resulting from the loan is bank's liability and the owner's asset. This is how most bank deposits come into existence. If all loans were paid off and no new loans were created, there would be a tiny bit of money left.