I'm not really sure what you mean. The Bank of England article you linked says:
> that would leave the buyer’s bank with fewer reserves and more loans relative to its deposits than before.
[...]
> By attracting new deposits, the bank can increase its lending without running down its reserves, as shown in the third row of Figure 2.
So actually the banks need deposits to hand out loans. What you are saying is that the deposits get a new label before handing them out as loans?
> that would leave the buyer’s bank with fewer reserves and more loans relative to its deposits than before. [...] > By attracting new deposits, the bank can increase its lending without running down its reserves, as shown in the third row of Figure 2.
So actually the banks need deposits to hand out loans. What you are saying is that the deposits get a new label before handing them out as loans?