At its peak in 2008, the funding gap of the British banking system, the difference between loans and deposits, stood at £720bn.
The difference between loans and deposits was £0.00.
As it always is at the end of the business day when the banks balance their books.
There can be, as indeed there was and is, a difference between loans made by the bank and deposits by the bank\’s retail customers. There can be a difference between those loans and the deposits made by retail and wholesale customers.
Which is what we have things like the interbank market, even central banks, to cover.
But the difference between total loans and total deposits is always £0.00.