I'm not sure I understand the point you're making about fractional reserve banking.

On another note (pun intended) from what I understand, the current system of money creation really seems fundamentally flawed and partly because of FRB. Here's one quote from Maurice Allais the 1988 winner of the Nobel Memorial Prize in Economics which pretty much put the whole system into perspective.

"All money creation must be the prerogative of the state and the state alone: Any money creation other than that of the basic state-created currency should be prohibited in a way that eliminates the so-called 'rights' that have arisen around private bank creation of money.

In essence, the ex nihilo money creation practiced by the private banks is similar -- I do not hesitate to say this because it is important that people understand what is at stake here -- to the manufacture of currency by counterfeiters, who are justly punished by law. In practice both lead to the same result. The only difference is that those who benefit are not the same."

Addendum: the first sentence isn't as true anymore as cryptocurrencies exist nowadays. Also private entities could create their own money but not create national currencies. I just wanted to give some other perspective to your post.

Don't get me wrong this is just a simple quote and is in no way the full detailed care the topic should be treated with which I plan on doing in some coming posts.