How do you think banks make money, how does a bank make money to pay its employees and business operational?
Does the bank rely solely on interest on loans from banks?
The interest on loans taken by people from the bank is one of the means the banks generate money for their operations. Secondly, the banks uses the collective deposit of thousands of people and once withdrawal is made by a few hundreds of people at a time, there is always higher rate of deposit than withdrawal. What happens to the remaining deposit not withdrawn? Banks will not be able to pay all its customers if everyone intends to withdraw at the same time and will eventually collapse.