Fractional reserve banking is always fraudulent

Fractional reserve banking is a misnomer since it is not banking in the genuine sense (given that with banking people expect to be able to get their money immediately always). It cannot exist in a free market... it is fraud if people cannot get their money back when they expect to be able to. If there is a risk of a bank run and - significantly - people might not get their money back at the schedule they expect then this is not banking but fraud. If there is no risk of a bank run such as this we are not dealing with fractional reserve banking.

By definition fractional reserve banking entails the risk of the customer not getting their money back contrary to expectations (if the possibility of a delay is expected then the customer does not have demand deposits and there is no fraud) hence the practice is fraud.