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The banks had 7 trillion in deposits as of June 2007 with 5.5 trillion of it in commercial banks and 1.5 trillion in savings institutions. Banks cash management will leave them with around 10% of deposits on hand at any time give or take a few % points depending on rules and market conditions. So with 7 trillion in deposits they only have around 700 billion on hand in total. The Fiat based money system we use only works as long as people have confidence in the system and allow banks to hold their money. If everyone starts to pull money out of the bank the system will collapse with great quickness. That is why a run on the banks are always to be feared and bad idea to be a proponent of unlesss you feel like trying to destroy the economey.

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