> USA eliminated fractional reserve banking many years ago. Bank lending is limited by risk analysis and capitalization, not deposits

It's still fractional-reserve banking. We just use better metrics than multiply reserves by number to get notional loan value.

Perhaps we're just arguing over semantics but the Federal Reserve no longer uses the term "fractional". Their current policy seems to be qualitatively different (and better) than what is traditionally defined as fractional reserve banking.

https://www.federalreserve.gov/monetarypolicy/reservereq.htm

> the Federal Reserve no longer uses the term "fractional"

The Fed would absolutely still argue our banks are fractionally-reserved. There just isn’t a reserve requirement. (It’s replaced with capital requirements.)