If coercion exists Fractional-reserve banking should be illegal so that fiat currencies maintain their integrity

There are arguments to say that a Government should make Fractional-reserve banking (Frb) illegal.

If there is no Government Frb presents no problem because we have a free market in currencies and neither does deposit insurance exist. Governments often choose to bail out failed banks which supports and maintains Frb, which is why it is prudent to assume that any Government will always support Frb and provide deposit insurance. There is no point making a law against the Government (a constitution) to outlaw deposit insurance because the Government can ignore any law. Given that Government have a propensity to bail out and protect failed banks it is best to prevent their expansion by making Frb illegal. If there is a Government Frb should be illegal otherwise the currency will eventually, over time, be destroyed. To protect the currency, Fractional-reserve banking should be illegal, it should be illegal to repeatedly lend customer deposits within the context of a fiat (imposed currency) economy.