Full-reserve banking

Full-reserve banking is a type of banking system where banks must keep all the money that customers deposit in their accounts. This means that instead of lending or investing the money, banks must keep it all safe in their accounts. The main reason for this is to make sure that customers' money is safe and that banks won't lose it. If a bank only kept a part of the money, like regular banks do, then the bank might lose all of it and customers wouldn't get their money back. The full-reserve banking system helps protect customers' money so that it won't be lost.