The solution is simple... stop fiat currency. Until Government loses its monopoly on money, then there is no fix. Whilst Government sets interest rates (Central Bank independence - don’t make me laugh) for purely political reasons, cheap money will mean mis-allocation of resources and high risk business adventures with the inevitable problems once rates go up... as they will due to Govt created ‘Boom-Bust’ economic cycle. As for Fractional Reserve Banking - it played an important part in the Industrial Revolution and still does in funding economic activity. Adam Smith favoured it, but said it was risky and lenders should stick to short-term loans. Back then there was no banking insurance and people knew the risks; today they don’t. I wonder how many people know that when they put money in the bank, they cease to own it, it becomes the bank’s property and the depositor becomes a creditor to the bank and only has a lien on the money they deposited, not a property right?