Nope.
Every loan is fully funded. That means either the bank already has money to lend you, mostly from deposits, or they borrow money after you take out your loan.
They mostly would borrow from other banks which have extra money, mostly from deposits.
Banks aren't magically lending without borrowing money from someone else.
The Fed gives Banks Instant 100% credit for YOUR Promissory Note and the MONEY is CREATED OUT OF THIN AIR to meet the DEMANDS of said Loan.
They used to borrow from the Fed to do that, rarely, but since QE, banks have so much extra cash that current loans like that from the Fed are only $6 million, with an M.
And there is a haircut, so they wouldn't get 100% of the value of the collateral.
They profit off the difference the FED charges them and what they charge you in INTEREST.
Why would they borrow from the Fed when they already have deposits they can use?
You have tried to make this bogus statement before, did someone actually TEACH you this? Or are you just Imagining that’s how it works?? Because if they did, you have a very SOLID case for FRAUD against them. I would encourage you to actually read and study our Credit Money system for yourself. You are so WRONG it is Laughable, ASK ANY BANKER
“Why would they borrow from the Fed when they already have deposits they can use?”
Because they’ve already loaned it out.
There’s only about $1.4T of actual currency. Very little is in banks; most of what we speak of as “money” is just loans, to wit debt.
On top of all those loans, the Fed writes “$0=($1)+(-$1)” in its ledger and loans the imputed/virtual $1 to the bank to in turn loan to customers, with the Fed and bank splitting the interest paid (and the paid back dollar restoring the $0 balance). The bank needs no assets (beyond marketing & bookkeeping staff) to make a tidy profit.