If the bank loans money then its deposits go down. The loan is counted as an asset as it has value due to the interest it earns.
Where money is created is much higher in the chain then your local bank.
You are mistaken. If the bank loans $9000 of your $10,000 deposit, you think your next statement shows a $1000 balance? LOL!
The loan is counted as an asset
You got one right.
Where money is created is much higher in the chain then your local bank.
Most is created at this level.