Full reserve banking is also known as 100% reserve banking
A collection of resources for anyone interested in this alternative monetary system.
Some people have attempted to dismiss Full Reserve Banking (the opposite of Fractional Reserve Banking) as a crazy system not taken seriously by any leading economists. This is entirely false. As recently as 2010, Mervyn King, the governor of the Bank of England, said...
Another avenue of reform is some form of functional separation. The Volcker Rule is one example. Another, more fundamental, example would be to divorce the payment system from risky lending activity - that is to prevent fractional reserve banking (for example, as proposed by Fisher, 1936, Friedman, 1960, Tobin, 1987 and more recently by Kay, 2009).
If the governor of the Bank of England takes its seriously, then perhaps we all should. The purpose of this website is to be a starting point for anyone wishing to research this
common sense, rational and quite practical banking system. Had we had Full Reserve Banking in place all along,
it is almost certain that the financial crash of 2007/2008 and its lingering aftermath would never have occurred.
New! Khan acadamy have just released this nice explanation of how full reserves work.
Related issues... * Debt Free Money * Islamic Banking * Alternative Currencies * Bitcoin * Monetary Reform * The Gold Standard * Commodity Money * Money as Debt * Monetary Systems * Fiat Money * Narrow Banking
Read "What Went Wrong with Economics" for a more detailed examination of
how our current fractional reserve system leads to economic instability →
