I am watching the Khan Academy Banking Video Series: (https://youtu.be/On3c86V5A_E) . (https://www.khanacademy.org/economics-finance-domain/core-finance/money-and-banking/money-and-banking/banking-and-money/v/banking-7-giving-out-loans-without-giving-out-gold?modal=1)
If a person who is being loaned money opens a checking account at the very same bank that loaned it to him.. why is that a liability on the bank's balance sheet? Aren't liabilities only what the bank would owe to others (such as its customers who save their money in the bank and are hence loaning it to the bank?)........... I understand that the concept of making it so that the money never has to leave the bank means that the person taking a loan from the bank just opens up a digital checking account, etc.. but Sal never made a mention that technically that checking account isn't a liability even if he's drawing/representing it on the liabilities-side of the balance sheet (the righthand side)
I would've posted a question in the khan academy website's comments, but these videos are quite old (and so are the comments) and from my previous experience my questions don't get replied on in those type of contexts on the khan academy website. Thus, I am asking on here. ..... If this is the wrong place to post this, please let me know and direct me to where it should be posted. Thank you so much for your time, everyone!