Mainly my own personal thinking. No other sources.
> Surely interest on deposits is accounted for as a funding cost and is paid out of the bank's revenues (same for staff costs).
Of course. But before those are paid, they do not (need to) exist anywhere (but in the profit account if you want to take an accounting view)
> I don't know why you're calling double accounting "trickery".
Because that's what these people claim that double entry accounting is some magic wand that is needed to create money. You could operate a bank without double entry accounting that would not change the economics of the bank operations anyhow. You do not need to have double entry accounting to make a loan nor write an IOU. I Can write you an IOU that says that beefield will pay 10 bucks to the holder of this paper and you could use that as a money to buy stuff at least from me and my mom. Not sure if anyone else would trust that... No lending, no double entry accounting needed.
