Not sure how it will work when the person borrowing is different from the one who made the original 100k deposit. I mean, the the person who has borrowed 90K is in no obligation to repay the loan when the first person wants to withdraw their 100K deposit.
I didn't want to get into fractional reserve banking & reserve requirements, I just wanted to share what I learned about money creation. But to answer your question... it's called a bank run! When a bank (in the USA) doesn't have enough money to cover withdrawals, the bank fails & the government shuts it down.
