If you read through the original links to the FED and the BOE, they explain that the way modern banking works is in contrast to what is in many textbooks.

My understanding is that reserves in today's banking rarely limit a bank making loans. Capital can, but reserves rarely do. Maybe Iowegian can give more clarity to this part of the subject.

"The Money as Debt:Disputed Information" link I gave is a very good explanation of some of the misconceptions of how current fractional reserve banking works in common practice. I referenced about the middle of the article, but the whole article has good information and is worth reading if you want to update your banking information from the 1950's. Things have changed a little since then, while a lot remains the same.

Both the Fed publication and the Bank of England publication says that some textbooks do not really reflect the way banks currently work.

John