[laurus]

The bank doesn't usually "have the money to give" when it makes a loan.

Let's say Bank A loans $1000 to a customer. It creates a $1000 bank deposit in that customer's account. On the balance sheet it looks like this:

Bank A:

(Asset) Loan to customer of $1000

(Liability) Bank deposit in account of customer $1000

Bank A created the $1000 at will out of thin air. This is how it happens most of the time.