Full reserve banking means 100% of a customer's current account deposits (also called ‘demand - deposits,’ i.e., not including ‘time / term - deposits’) is fully backed by corresponding reserves, thereby mitigating the risks associated with bank runs and providing unparalleled financial stability. The customer’s money will always be available when needed.
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Traditional banks, on the other hand, engage in 'fractional reserve banking', lending out customer deposits, which introduces risk and potential limitations on withdrawals, as we observed with the bank run at Silicon Valley Bank, where $142 billion out of $175 billion in customer deposits were withdrawn (or queued to be withdrawn) within two days, leading to its collapse.

For a clear comparison with examples between Full Reserve Banking and Traditional Banking, please visit our webpage at https://www.oro.bank/why-full-reserve.