[jussij]

For every debit there has to be a matching credit so nothing comes out of thin air.

If you go to your Friendly Neighbourhood Bank for a loan they are giving you their money, so you can then give that money on to someone else.

Now the bank is not so friendly that it gives you their money, instead they offer to lend you their money, on the proviso you pay it back in full and with interest.

For example lets say you want to buy a new car, so you go to the bank to get the loan.

The bank transfers the money to pay for the new car to the car dealership and you end up with a new car and a whole lot of debt.

[zrail]

> they are giving you their money

They create that money by crediting your checking account (their liability) and debiting your loan account (their asset).

[jussij]

But you missing one step where they credit your loan account by debiting their loan book account.

Also your loan account is not a bank asset, it is a bank liability.

It is money the bank might not get back.