Banks do not own their customer's deposits if they did their role would not be a bank. By definition the assets placed with the bank are still owned by the person making the deposit... the contrary is absurd it would be like the customer making a donation to the bank. The word bank implies ownership is still retained by the person making the deposit and they are using the bank as a safe.
Given that banks do not own the money placed in the customer's accounts then any form of fractional (negative) reserve banking in a free market is theft. If there is no deposit insurance then to spend money which has been placed in the bank is theft.
If there is deposit insurance then if the bank makes loans with the deposits then money is being printed by the bank.
Fractional (negative) reserve banking is either theft or counterfeiting depending on whether the bank is guaranteed by the government.
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