Reserve banking would be very stable if the central bank did it. If everyone had deposit accounts at the Fed, there would be no possibility of bank failure and

Reserve banking would be very stable if the central bank did it. If everyone had deposit accounts at the Fed, there would be no possibility of bank failure and no need for any kind of deposit insurance. And banks that issued loans going bankrupt wouldn’t threaten borrowers (since their money would be in their treasury account, not in the banks account).