[Garth Tater]

"No. They reserve a portion of deposits, not a portion of their loans."

Todd, when subject to a 10% reserve policy banks must keep in reserve assets worth 10% of their outstanding loans. So, how were these loans "fully funded" if with one million dollars of assets the bank can make ten million dollars of loans?

[Toddsterpatriot]

Todd, when subject to a 10% reserve policy banks must keep in reserve assets worth 10% of their outstanding loans.

If they loan more than the deposits they hold, how do they have any reserve, let alone 10%?

So, how were these loans "fully funded" if with one million dollars of assets the bank can make ten million dollars of loans?

Because they can't.

One million in deposits would only allow $900,000 in loans.