Even in the absence of required reserves a prudent local banker will always keep reserves. If he doesn't, he will soon be out of the banking business, regardless of the law. The concept here is that money is a 'rate' or a relationship, not a quantifiable thing. Loans increase effective demand. The repayment of loans decrease effective demand.
Loans increase the rate of spending.
The repayment of loans decrease the rate of spending. Money can be defined in the broad sense to be any form of IOU, i.e. promise to pay, whether in legal tender or not. Well, it does lead to be the concept of endogeneity, which seems to elude you. Every institution that makes loans is operating on the basis of fractional reserves, even if putatively its reserves are 100 percent. Any distinction between banks and bank-like financial institutions is purely artificial.