>In a non-fractional reserve system the banks would compete for deposits so they can earn money from loaning that back out. I understand these words but not ho

>In a non-fractional reserve system the banks would compete for deposits so they can earn money from loaning that back out. I understand these words but not how you’re putting them together. If banks are lending deposits, then definitionally, they only have a fraction of those deposits left as reserves. What am I missing about your hypothetical? What does this non-fractional reserve system look like if lending still exists?