Is there a better alternative to fractional reserve banking?

Advocates of Full Reserve Banking maintain that their system reduces long term financial instability. http://en.wikipedia.org/wiki/Full-reserve_banking Positive Money http://www.positivemoney.org. read more

Fractional reserve banking hands control of money supply to banks. Your economy is held to ransom by the risk appetite of bankers. This leads to bubbles when they feel like taking a risk and busts when they don’t. read more

So ending fractional reserve banking would have to be part of a larger reform ending the practice of maturity transformation within the entire financial shadow banking industry. read more

Back to Fractional Reserve Banking. So now that you understand full reserve banking, you should have a better idea of how Fractional Reserve banking works. In the fractional reserve system, a bank can have loans of $100 for every $50 they have on deposit. read more