Bank depositors will not lose their deposits in a banking panic if:

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In a 100% reserve banking system, all deposits are backed by an equal amount of reserves, meaning that even in a banking panic, depositors will not lose their deposits. In fractional reserve banking, banks loan out a portion of the deposits as well as maintaining reserves, which means that if there is a significant withdrawal of deposits, banks may not have enough reserves to meet all withdrawals and depositors may lose some or all of their deposits. The presence of a central bank can help to stabilize the banking system during a panic, but it does not guarantee that depositors will not lose their deposits. The actual reserve/deposit ratio equal to the desired reserve/deposit ratio is ideal for maintaining stability in the banking system, but it does not prevent the possibility of a panic and depositors losing their deposits.

Bank Depositors Will Not Lose Their Deposits in a Banking