Actually it is. There are two ways to fractional reserve:
1.) Lend out more money than you have.
2.) Give out certificates for more assets than you own.
Discussion
Wouldn’t lending 10% of everyone’s deposits be fractional reserve?
No. That’s more than full reserve. Fractional reserve means that you have only a fraction of the assets that you owe.
Fractional reserve is when a bank has $100 deposits and uses this to back a $1000 credit.
Or when a central bank gives out 100 ounces worth of gold notes and only has 1 ounce in the vault.
