What is needed is to let people own their own money, with the banks keeping it safe for those that want complete peace of mind. Let the depositor decide if the money should be lent and for what period, until it matures. Remove all political control from banking. And let's have more language of the fiduciary rather than the gambler from bankers.
LewRockwell.com recently posted Murray Rothbard's excellent article-length introduction to the economics of fractional-reserve banking. You can be read it here.