deposits are liabilities to the bank - as they are owed to depositors/customers so the $100 cash loan that the bank issues to you becomes a deposit in that same bank, and thus a liability for the bank you can move those $100 outside of the bank at any time/on short notice

Illya Gerasymchuk 2025-08-05 21:41

in the bank’s balance sheet: ⬆️ +$100 assets - the loan they just issued ⬆️ +$100 liabilities - the $100 your account was credited with your loan is an asset to the bank - and your loan itself funds the $100 deposit that you get in your account