Fractional Reserve Banking Risk

Nothing new... Fractional-reserve banking is the ability of a bank to accept deposits, make loans or investments, but only holds reserves equal to only a fraction of its deposit liabilities. Reserves are held as currency in the bank, or as balances in the bank's accounts at the central bank.

In today’s digital environment, almost all deposits, loans and accounts are held in computers. We have the ability to access and transfer funds 24 hours each day. The banks cannot lock depositors out by locking their front doors.

Banks protect themselves by formula. Depositors have no direct access to bank management.

Bank failures cannot be seen or made public. They could be insolvent presently.

Safety of banking institutions is a systemic illusion. The worldwide use of fiat currencies helps hide the risk.

This system will exist until an injured country decides to break their link in the systemic chain.

I do not rely on any system which uses a fractional reserve system.

Here is today’s beauty.