Full-reserve banking

Full-reserve banking (also known as 100% reserve banking, narrow banking, or sovereign money system) is a system of banking where banks do not lend demand deposits and instead, only lend from time deposits. It differs from fractional-reserve banking, in which banks may lend funds on deposit, while fully reserved banks would be required to keep the full amount of each depositor's funds in cash, ready for immediate withdrawal on demand. Banks currently operating under a full-reserve ratio generally do so by choice or by contract.

Full-reserve banking

Full-reserve banking (also known as 100% reserve banking, narrow banking, or sovereign money system) is a system of banking where banks do not lend demand deposits and instead, only lend from time deposits. It differs from fractional-reserve banking, in which banks may lend funds on deposit, while fully reserved banks would be required to keep the full amount of each depositor's funds in cash, ready for immediate withdrawal on demand. Banks currently operating under a full-reserve ratio generally do so by choice or by contract.