In 2020, banks don't have to have any reserves. This means that, when you give them your life's savings, instantly they could have none of it on-hand to give back to you.
This is not true. The idea that deposits is inaccurate.
What do banks do with the deposits? They have 2 choices: buy a government approved asset or lend the money.
Double entry accounting shows how all deposits (liabilities) to the bank are backed by an asset.
Oooo I got receipts!
https://www.federalreserve.gov/monetarypolicy/reservereq.htm
You are claiming it is backed by nothing. That is untrue.
To start, understand reserves. They are not legal tender. They are simply bank instruments that have a specific use case. They are not broad economy money. They cannot be used for another but interbank settlement.
As stated, all deposits (liabilities on a commercial banks balance sheet) are backed with either government approved assets (US treasuries or MBS) or notes from loans.
I'm not claiming anything that the Federal Reserve itself is not claiming.
ZERO reserves since 2020.