You are imagining this definition to be more complicated than it needs to be. In nearly every description of fractional reserve banking or free banking, a 100% reserves system is used as a benchmark. See for example, several of Rothbard’s books on banking, even a mainstream textbook will likely compare the two (see Mankiw).

The Mystery of Banking | Mises Institute
Readers of The Mystery of Banking will find that money and banking are, contrary to what the book’s title might suggest, no longer a mystery to them. Textbooks
