Modern central banking allows banks to initiate new money creation while holding only a small fraction as cash reserves for possible deposit withdrawal. When extended throughout the banking system, the process of "multiple deposit expansion" leads to inflationary pressures. Christian writers that consider the morality of fractional reserve banking often criticize it, not only because of the inflationary impact, but the impossibility of meeting all legal requirements: when money is loaned out, it cannot at the same time be redeemed as a demand deposit. Given the promise to return demand deposits and the impossibility to do so for all depositors, some Christians have condemned fractional reserve banking as inherently fraudulent. But is this necessarily so? This article will review fractional reserve banking and other institutional arrangements that lead to bank runs and inflation (legal tender laws, central banking, etc.) to determine if fractional reserve banking by itself is necessarily immoral. The paper will survey existing scholarly thought, and ask the question "are there any circumstances where fractional reserve banking could be morally justified?" We conclude that fractional reserve banking is not necessarily immoral, when not combined with central banking and legal tender laws.