Yeah of course, but that's not the point the parent was contesting. They claimed a bank loans from funds deposited which isn't the case.
If a bank chooses to create an asset (your liability) by loaning money to you, if you then fail to repay, then they're in a bad spot. They're certainly not allowed to just delete the records of the loan being issued to get rid of the delinquent asset on their balance sheet.
No, a bank creates money to loan out from nothing. No deposits required.
As a sibling comment points out, other jurisdictions exist so here's the UK central bank's explainer on the topic: https://www.bankofengland.co.uk/explainers/how-is-money-crea...