If the bank doesn't have enough cash to pay out its deposits, why doesn't the bank go bankrupt when customers demand their money?
Discussion
They do go bankrupt from time to time, for that exact reason. Most of the time, enough of the sleeping normies "keep their money in the bank" so that doesn't happen.
So if any bank in the world could go bankrupt at any time, why are there banks signing up to fractionally reserve and lend?
Why don't they see this danger and avoid it by keeping enough reserves on hand to meet all possible withdrawals?
Why would anyone want to engage in fractional reserve banking? Because the profits can be immense. Why don't they keep more reserves on hand? Because that reduces the profit potential. And some banks are indeed more restrained that others -- are less, shall we say, extended, than others and do have larger reserves. Eventually, there were (pretty modest, like 10 per cent.) reserve requirements imposed on banks in hopes of preventing the recurring "panics" that had ruined many an innocent man, but these requirements have varied and banks still go bust. And parts, at least, of this parasitic overclass buy legislators and get "bailed out" when needed. Nice work if you can get it -- provided you have a brain too small to understand that you are engaged in predatory fraud, or a conscience atrophied enough that you don't care.
All they have to do is fake it. Give excuses, charge more fees, reduce hours of operation, and/or close up branches in more populated locations. Making it highly challenging to get all of your funds.
It is kind of like floating your monthly bills with being late, but on a larger scale. There would have to be massive class action lawsuits in order for them to admit they are broke. Before they would ever stop playing the game and admit they are fucking with you.