Fractional reserve banking is not even a valid free-market enterprise. There must always be other agents (other depositors) who lose out. Otherwise it is nothing more than an IOU being issued (and passed off as money) between collaborators. (Not quite counterfeiting more a situation where the good name of the bank is assumed to be reliable.)
If there is no deposit insurance deceit is inherent in this practice of exploiting third parties otherwise the word ‘bank’ would not be used.
In a free market fractional reserve banking is fake banking... we cannot say it is a fraud if it is something they openly admit to.
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