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Of course it is lower than 100%. Our whole modern banking system is built on this fact. https://en.wikipedia.org/wiki/Fractional-reserve_banking https://en.wik

• bloodyplonker22 4y ago
  FYI, all major banks switched off of fractional reserve banking more than a decade ago and have moved to another system that uses a multitude of different variables.
  • patrick451 4y ago
    What is this other system called?
    • cjbgkagh 4y ago
      No reserve banking, like fractional reserve but the fraction is zero. Instead the banks have to be able to pass stress tests which requires that they have reserves which in effect will be a fraction of deposits. It’s more complicated, less transparent, open to gaming, and there is huge incentive not to fail a bank. Also they often allow the use of cash-like instruments which are often riskier and less liquid and probably misrated by compromised rating agencies. The standards were lowered so that the banks would inflate the economy.