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"fractional reserve banking"

It's a good post, you are correct in that we have a floating exchange rate, but we haven't had fractional reserve banking for decades.

https://www.bankofengland.co.uk/-/media/boe/files/quarterly-...

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I'm aware that capital requirements have mostly taken over from reserve requirements over time (in such a way that the banking system is even less sound than the average person assumes), but the point I was making is that in all these these systems there will be liquidity issues if all the depositors were to try to withdraw their money to spend it on something at the same time.

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