To prevent inflation the banks should be prevented from reloaning customer deposits if there is a fiat currency

Fractional-reserve banking (Frb) is no more than the ability of banks to reloan deposits. If it is justified to prevent Frb on the grounds that, with a fiat currency, inflation will result, then reloaning deposits must be illegal. If there is coercion and a fiat economy, we must prevent banks from reloaning deposits if we would like to avoid the consequences of inflation.