Okay. Like I said, fractional reserve banking distorts economic calculation. It redistributes purchasing power. Tell someone who is on fixed income that inflation is good for the economy.
Investment should be based on savings, not artificially created money. If consumers want to spend more and aren’t saving, why does it make sense for companies to have an abundance of cheap credit with which to invest in higher order goods? Genuine savings shows a shift in consumer preferences. The savings/investment/consumption balance is distorted when you throw artificial credit into the mix.
Using your approach, it would be impossible for banks to loan money whatsoever. Which means they couldn't pay interest for savings.
It is all tied to generating economic growth.