The amount of lending in a closed financial system must always equal the amount of borrowing in that system. In a closed economy the total value of all real assets must equal the amount of borrowing in that system.

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In a closed financial system, all lending must be matched by an equivalent amount of borrowing since every loan given out by a lender is accounted for as borrowing by someone else within the same system. Similarly, in a closed economy, the total value of all real assets must equal the total liabilities (borrowing), as every asset owned is financed either through equity or borrowing, balancing out the total value of assets and liabilities.

The Amount of Lending in a Closed Financial System Must