[perl4ever]

I don't see why being regulated or not has anything to do with whether you are practicing fractional reserve banking. As I understand it, the concept is just that your assets are not all liquid, but rather some of them are long term loans.

Which is not to say I think unregulated banking is the same as regulated banking.

[ShorsHammer]

Bank reserves have little to do with money creation:

> Lord Adair Turner, formerly the UK's chief financial regulator, said "Banks do not, as too many textbooks still suggest, take deposits of existing money from savers and lend it out to borrowers: they create credit and money ex nihilo (out of nothing) – extending a loan to the borrower and simultaneously crediting the borrower’s money account

> the German central bank explains that the money supply is not determined by the reserves of private banks, but by market factors and regulatory decisions.

https://en.wikipedia.org/wiki/Fractional-reserve_banking#Cri...