With todays fiat system private banks can create money. This is not possible with bitcoin.
The total amount of bitcoin in the world is still controlled by the bitcoin network and outside of banks control.

Fractional reserve can still easily exist with bitcoin, but only if users allow it.

I would only deposit my money into my own account/address with the bank.
Then I could monitor what the bank did with the money. I'd either have an app on my own computer or
buy some monitoring service from a 3rd party.

I guess you could also have bitcoin scripts making it impossible for the bank to move your money without
your "signature". But then why not just do your own banking and have that safety key with a 3rd party service.

If you don't hate fractional reserve like I do, feel free to put your money in a bank without these safeguards.
But remember this is like investing in the stock market. Suddenly all your money can be gone.