The money in the bank is a very broad concept. Until the bank has settled an individual or organization's money in cash, all the money in the bank can be called bank money.
This is also one reason why banks are not too afraid of financial fraud. Sometimes, banks may even actively participate and play a role that might not be very appealing.
The reason is quite simple. For example, if Lynch wants to borrow so much money, he cannot carry all that money on him all the time, nor can he put it in an unsafe place.
The only thing he can do is deposit the loan money into the bank. If you think about it carefully, it seems funny. To some extent, this also satisfies the bank's risk control.
Sometimes, before lending, the bank will sign a supplementary agreement. The specific amount of the loan will be deposited into a designated special account, which is monitored by the bank.
