Without ability to be backstopped by potentially infinite supply creation, 1% reserve ratios will not be tolerated. Forgive me for not providing references, but I think the data points to about 10% being the limit of what humans will tolerate when there's no infinite insurance backing up a balance sheet.
Essentially, at higher than 10-to-1 leverage, humans get a bit uneasy and will likely cause a "run" on a bank.
Regretfully it does not cause a run until the smoke and mirrors of FRB are clearly exposed and the media unfortunately continues to support the idea that it is a good thing.
I like Bitcoin because i THOUGHT the intention was to remove the ability to leverage "create money" at will and WITHOUT LIMIT or CONTROL which to many , myself included , is a fraud
http://www.zerohedge.com/news/guest-post-money-nothin-primer-fake-wealth-creation-and-its-implications-part-1
Anyhow here are a myriad of articles on the effects/damage of fractional reserve banking
http://www.zerohedge.com/news/2013-06-03/guest-post-why-fed-cant-stop-fueling-shadow-bank-kiting-machine
http://www.zerohedge.com/news/2013-09-14/illogic-fractional-reserve-banking
http://www.zerohedge.com/search/apachesolr_search/fractional%20reserve%20banking
http://www.zerohedge.com/news/guest-post-problem-fractional-reserve-banking