A lot of misinformation in this thread.

A few points to remember concerning fractional reserve banking.  An individual bank is not able to "create" money but the system as a whole can.  And under a 100% reserve requirement no bank loans can be made.  If 100% of the deposits must be held in reserve there would be no excess funds to loan out*.  The bank would function as a depository or "piggy bank,"  somewhere to stash your valuables for safe keeping.

edit: *(conceivably) some loans could still be made out of the bank owners equity