We do not have fractional reserve banking

It is commonly assumed that at the present time most countries are living under a system of fractional reserve banking but in truth we do not. To have fractional reserve banking requires that banks can fail. If banks are guaranteed by the state (or the authority which issues the base notes) then there is no such thing as fractional reserve banking. To have limited reserves means that the bank might not be able to meet all demands for the return of deposits as they fall due but that is not the case if the bank is guaranteed... it can always meet all demands.