It is not out of ignorance that the banks don't collapse but instead the deposit guarantee

What is commonly known as a deposit at a bank is not actually a deposit. The word 'deposit' suggests that the money is available on demand and is being held for safekeeping. It is only because of promised Government intervention that the money is safe. It's not a deposit if the bank has the ability to lend the money out again, instead the customer has purchased the credit of the banking institution.

It is only because of the deposit guarantee that bank credit has value. Without deposit insurance the banks would collapse, it is not because of fraud that the banks are still solvent it is the threat of monetisation which keeps people's deposits in place.