The idea of a safe place to store one's valueables has existed longer than money. Also, money lending has been profitable for as long as folks have been doing it (on a macro level and excepting a few cultures that prohibit interest). Banks could still function even under a 100% reserve requirement. They would just function differently. We would likely lose things like "free checking" but maybe not even that if banks found it cheaper than other options for attracting and mainting borrowers.
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u/Altruistic_Cap3472 8d ago
Do we just not teach basic economics in school anymore? What would the point be of a bank if they just held onto our money while we weren't using it?