Why do banks show increases in cash as credits and not debits?

Question

I know that in regular accounting practices a credit shows a decrease in an account and a debit shows an increase, so why do banks do the opposite?

Ok so that makes sense, but how would it look? You would credit the account of the client being the liability, and you would debit an asset account? If you were selling something you would debit the cleint and credit the inventory, when payment was recieved you would credit the client and debit the bank. So a bank credits the client when a deposit is made and debits (what)?

Answer 1

When you deposit money with a bank, you:
Dr Cash at bank
Cr Sales or a/cs receivable (or whatever)

When a bank accepts deposits from customers like you, they'd:
Dr Cash (an asset a/c)
Cr Customers' deposits (a liability a/c to the bank)

A bank will not just keep all the cash in their vault cos that doesn't earn anything. It will invest the money somewhere or use it to lend customers who need bank loans.

Answer 2

Banks do use "regular" accounting. Your original assumption about credits and debits is wrong. "Credit" is not another word for decrease. A credit is a decrease in an ASSET or an increase in a LIABILITY. Debit is the opposite in both cases.

Remember: they are not doing your record keeping for you; they are showing you a copy of their account. So, your deposit is an asset to you and a liability from their point of view.