Fractional reserve lending ended, for any practical purpose, in 1934 when we left the gold standard domestically. It was intended to protect the gold reserve and banks against runs on deposits. Prior to that, banks had to keep a percentage of gold in reserve to assure depositors that their deposits wouldn't be eroded away.

With a fiat currency and the backing of the Federal Reserve and government guarantees/insurance there was no purpose served in limiting the ability of a bank to lend to qualified borrowers. The requirements of the regulation remained in place, but banks could supplement their reserves via borrowing from other banks or the Fed in order to meet those.

Reserves/deposits are an obligation to banks, not assets. Interest is charged on any shortfall they have in their reserve position at the Fed's overnight rate that is commonly considered the baseline cost of money. Banks normally have many times the total of their deposits in outstanding loans, but those are covered by interbank and Fed loans, not simply free to the banks.