Fractional reserve lending?

Well, I am not sure that you have this completely right.  There is a lot of lending going on that does not go through the deposit type banking system.  Examples are auto loans,  farm machinery loans, credit cards, and Federal Land Bank, which is a co-op bank.  These types of loans are made by loaning companies, that sell bonds on the money market.  As the loans are repaid, the loaning company will be paying off the bonds again, without going through a deposit type bank. This type of loaning, is a large per cent of customer borrowing.