Not everyone realises that the banks have the ability to increase the money supply

If people don't realise that banks inflate the money supply then banks have duty to inform people of the realities, otherwise it is theft.

Fractional reserve banking is a violation of property rights, only because people don't realise their money is not kept in a vault at the bank. A fraud like this is a type of theft because the customer is not being given what they expect, without the deception there is no crime because we get what we expect. It might be forgivable if the banks do not consider that their customers are not (might not be) aware of the reality, if we are aware of the trick (and that the customer might not know about what is going on) then we have stolen from the customer, and are guilty. We, as bankers have no responsibility towards the customer (we are free to assume they know what is going on) but if we suspect that they might be assuming a different model of banking then we do have a duty to properly inform them of the truth, failure to do so is a negligence on our part. It's not fair to sell someone something they believe to be something else, it is (becomes) a form of theft and exploitation when we discover that they are making different assumptions about how the system works, or that in fact they are ignorant of the existence of a banking system to begin with, assuming it only to be a warehouse vault.