Illya Gerasymchuk
Entrepreneur / Engineer
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
the bank needs a liability to fund an asset
when a bank gives you a loan it gains both an asset and a liability in the same amount
let's say you get a loan for $100