What is Full Reserve Bank?

How is it different from traditional
(fractional reserve) bank?

All major banks worldwide

Banking system
Only hold a fraction (5-10%) of depositors’ funds in reserve and lend out or make investments with the remaining funds.
Bank run
Bank runs can occur when confidence in banks declines, leading to a surge in withdrawal requests that can exceed the bank's reserves and potentially cause insolvency
Bank maintains reserves to cover normal withdrawal activity, but when deposits are withdrawn at a faster rate than usual, a liquidity shortfall occurs.
Banks must effectively control their exposures to risk in order to be financially stable. If depositors doubt the bank's assets are worth more than its liabilities, a bank run could occur.

We strongly believe that Banks should not take risk with customer deposits to profit during good times, only to be bailed out by taxpayer money when a crisis happens.

ORO Bank will always have customer deposits on-hand, even if a massive bank run occurs.

Mike Kayamori
Founder and CEO ORO Bank

To better understand the difference between these 2 banking models, let’s go to an example

You have $1,000.
You deposit into a traditional “fractional reserve” bank.

The bank typically keeps only 5–10% of customers’ deposits.

If more customers than expected go to the bank and withdraw their funds at the same time, the bank will face a liquidity crunch and potentially become insolvent.

Similar to the US banking crisis of
March 2023

A newspaper featuring a man standing in front of a bank, possibly capturing a news article or event.

Now, if you deposit $1,000 to
a full reserve bank, like ORO Bank?

Full reserve bank holds 100% of customers’ deposits and does not engage in lending or investment. Customers can withdraw any amount at any time without any issue.

Try ORO Bank to
have a peace of mind

Open ORO account in 10 minutes or less.

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