When a customer places funds in a bank, they transfer custody of their money to the institution for secure safekeeping.
Legally, the bank assumes the role of debtor, obligated to return the deposited sum to the customer upon request.
The depositor, or customer, retains the right to retrieve their funds at any point, subject to the established terms.
Consequently, the customer functions as the creditor, and the bank as the debtor within this financial arrangement.
This establishes a core banking tenet: deposits represent a bank's liability and a customer's asset.
Grasping this concept illuminates banking operations and safeguards depositor entitlements.