That's not quite correct. If you apply for a $10k loan from a bank then, once the loan is approved, the bank will simultaneously:
- increase your current account balance by $10k (credit your current account)
- increase your loan account balance by $10k (debit your loan account)
That $10k deposit appeared from nowhere. You didn't 'put the deposit in', and it wasn't transferred from another customer or another bank. And the bank does not need to have $10k sourced from somewhere else.
Of course, when you want to withdraw that that $10k, or transfer it to someone who uses a different bank, the bank will have to come up with $10k from somewhere.
But maybe whatever they are called up to transfer to customers of other banks will be balanced out by transfers from other banks' customers to their own.
- increase your current account balance by $10k (credit your current account)
- increase your loan account balance by $10k (debit your loan account)
That $10k deposit appeared from nowhere. You didn't 'put the deposit in', and it wasn't transferred from another customer or another bank. And the bank does not need to have $10k sourced from somewhere else.
Of course, when you want to withdraw that that $10k, or transfer it to someone who uses a different bank, the bank will have to come up with $10k from somewhere.
But maybe whatever they are called up to transfer to customers of other banks will be balanced out by transfers from other banks' customers to their own.