[innethread]

But considering that a lot of costs could be removed by cutting out the lending aspect of the bank business, wouldn’t this % become significantly lower? I imagine a good chunk of a bank’s budget is spent on loan management, risk assessment, marketing, etc.

[gus_massa]

You should also add the cost to pay more to the guys in the doors with the guns.

A usual bank has only some cash for the day, and a lot of paperwork that is important for the bank but worthless for everyone else.

But a 100% reserve bank must store all the money like Scrooge McDuck so it will be a juicy targets for thieves and you must add much more security guards, something like Fort Knox.