Yes, the loan is the bank's asset. The deposit created aka "the money" is the bank's liability. I don't think we're in disagreement here.
A corollary of this is that contra popular suggestions otherwise, the accounts net to zero and the bank obtains no gain from "printing money", only from interest earned on repayments.
Yes, the loan is the bank's asset. The deposit created aka "the money" is the bank's liability. I don't think we're in disagreement here.
A corollary of this is that contra popular suggestions otherwise, the accounts net to zero and the bank obtains no gain from "printing money", only from interest earned on repayments.