You say that as if the right to operate a fractional reserve bank is granted by the government. Without a government, fractional reserve banking would still happen, and people would put their money in banks that had good reputations.
I find the aversion to fractional reserve banking that is frequently displayed on the internet quite odd.
Without a government, fractional reserve banking would still happen, and people would put their money in banks that had good reputations.
This is true, but fractional reserve banking is inherently unstable: bank runs happen, and will happen (eventually) to any bank without government guarantees.
I find the aversion to fractional reserve banking that is frequently displayed on the internet quite odd.