The JMS also brings forth a The JMS-Banking Template which follows from the set-up of the JMS itself and which provides for an interaction between the JMS-MA and the JMS-Banks.
This means that:
1. JMS-Banks ONLY work with REAL ASSETS !
Banks in the JMS can only work with REAL ASSETS that they have as deposits. It therefore is only possible for them to work with a 100% backing of the loans and investments which they make. If they are Authorized by the JMS-MA to work with the RESERVE of 33% they have more options to do Investments.
2. NO FRACTIONAL RESERVE BANKING ALLOWED or POSSIBLE in a JMS !
Fractional Reserve Banking has been relentlessly abused in a mindless and reckless way in the current monetary system causing destruction beyond belief.
This "Fractional Reserve Banking" is a bookkeeping-trick by which a bank is able to multiply deposits of account holders with a factor of (at least) 33. A bank that opertes with this method can create and loan out 33 times as much money that it in actuality has on deposit and under its custody. This is the case while with such created and loaned out money:
1. the banks DO NOT RISK ANY ASSETS OF THEMSELVES AT ALL, but it is the person who signs off on the loan who does so, because they thereby contractually admit and acknowledge he/she is a debtor of the bank due to which the bank can either create the money itself or borrow it on the market;
2. there often IS NO underlying VALUE or BACKING AT ALL;
3. it is based on an underlying value that does not provide for its full backing at all -more far from it. The underlying backing is then fabricated on bubble-expectations, irresponsible, unjustified and unprofessional assumptions and speculations, greedy abuse of this competence by the banks and too liberate regulations.
These unlawful acts in backing have triggered the financial crisis in 2008.
In the sixties computers have caused an enormous and ongoing easing up for applying this bookkeeping-trick, which jolted the relationship of real value and money for people into an ever increasing abstraction
Therefore, the JMS does not allow fractional reserve banking. Not by the JMS-MA, nor by any banks operating within the JMS.
Just Bank is the First JMS-Bank in the World that is also set up according to that New JMS-Banking Template and it has a global outreach.