Banking Vault Systems vs Current Status Quo

If banking is divided into two distinct functions—100% reserve safekeeping (where deposit institutions charge a fee to store money with zero risk of default) and peer-to-peer peer-reviewed investment (where depositors explicitly choose which projects, businesses, or credit pools to fund)—then the financial system will eliminate systemic bank runs, reduce the severity of the business cycle, align investment risk with individual risk tolerance, and eliminate the moral hazard of government bailouts.

Elimination of Bank Runs and Credit Risk

When a bank holds 100% of customer deposits at all times and depositors decide where to loan their savings capital, then the risks in banking would be eliminated.