When a bank makes a loan to one of its customers,it increases its liabilities.

Name: When a bank makes a loan to one of its customers,it increases its liabilities.
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When a bank makes a loan to one of its customers, it creates an asset (the loan) and simultaneously creates a deposit in the borrower's account, which is a liability. However, the act of making the loan itself is seen as creating an asset, not increasing liabilities.

When a Bank Makes a Loan to One of Its