The examiners still require reserves, the FDIC has removed them. The bank doesnt loan out 90% of your money and save 10 percent. They take your 100 dollars and get 900 from the discount window, which is "printed" by the fed, and loan that out. The pay 4% interest to you for your 100 and receive interest payments up t0 25% or more on the 900 they borrow at prime. Without doing the math its obvious they are turning a huge profit on your money. When you withdraw your money, they no longer have the reserves they need, so they must raise what they pay out on cds and money markets to get their reserves back up. The money printed for the loans is what causes inflation, conversely the paying down of loans causes deflation. The 10% reserve no longer exists, except for examiners (States charter banks) and when they allow those reserves to drop to a smaller percentage, the banks make more profit, but the risk of a run increase exponentially. I believe we will find that examiners in CA lowered the reserve requirements to yield higher profits, and as a result caused the bank runs without anyone standing in line. This is what fractional reserve banking is, and this is why you are seeing bank failures, it is by design. After the banks fail, the "too big to fail" banks buy up the assets of the smaller banks for pennies on the dollar and the competition is gone. Remember, the FED is owned by the "too big to fail" banks. However, in this case no one stepped up to buy SVB. Why? either it is backed by worthless loans, or the Biden administrations paln is for a complete failure of the banking system, CBDC to the rescue.