Lack of rent on money enables Fractional-Reserve Banking

If money (the commodity most commonly traded) has little or no intrinsic value, as in the case of gold currency or fiat, then Fractional-Reserve Banking is possible. The reason being, that if the commodity is loaned out multiple times, the original owner is not adversely affected. They have lost nothing of value. Inability to continue to have exclusive access to, and use of the "money" does not alter their existence.

This arises when the currency has little or no practical use and is a store of value only, desired for its numismatic qualities.

This is not true in the case of rentable assets being used for money as rental income will be lost. The extreme example is land banking where land itself is used as a store of wealth and currency.

Land banking is the practice of purchasing raw land with the intent to hold on to it until such a time as it is profitable to sell it on to others for more than was initially paid. Land is popular as an investment as it is a tangible asset as opposed to shares or bonds. Wikipedia 22nd Dec.'09

To exploit its full advantage, the owner of land will make a rental income from the land at all times. It is not people for more than one person to be the recipient of the rental income, and so ownership cannot be in dispute; it is a true loan.

What is the rental income on fiat money, or even gold?

A commodity that has no significant rental income is prone, exposed to the possibility of Fractional-Reserve Banking since multiple owners can be confused as to whom the money is owned by.