Fractional reserve banking is a system where only a fraction (10%)
I wish it to be 10%. In my country its 0.5% .... It means that banking system can generate 200x the amount of money they actually hold because of another mechanism -
money creation After March 26, 2020 in US minimal reserve was set to ... 0%. Means that banks no longer need to have money to lend... They can lend as much as they want and in the situation of "bank-run" withdrawals will be locked, or we will see bail out and FED will simply print new currency units to patch the problem.