Fractional Reserve Banking, Unrealizable Capital, and Bank Runs as Temporal Irreversibility

This paper proposes a novel framework for financial instability by defining fractional reserve banking as a critical temporal system. We argue that bank runs are not psychological panics, but temporal phase transitions occurring when the density of irreversible historical commitments exceeds the system’s capacity for future postponement. By introducing the 'Realizability Density Equation,' we formalize the threshold of temporal insolvency, where collective demands for realization necessitate a physically impossible reversal of history. Financial collapse is thus redefined as the exhaustion of postponable future rather than a mere liquidity shortage.