To recap: currently private banks create money as debt when they make loans. This electronic bank money now represents 97% of the UK money supply, with only 3% being created debt-free by the government in the form of notes and coins (a good place to start to understand the UK money system is the one hour documentary 97% Owned. This money is allocated by the lending decisions of the high street banks, and so we see money pumped into the housing market (putting house prices way beyond the means of young people) instead of small businesses, as banks receive collateral if mortgage holders default on their loans. This is massively undemocratic, as control of the banks' power to create money is in the hands of its board members, who are only accountable to the bank's shareholders.
Herman Daly (grandfather of green economics and the author of Steady State Economics)
Read the Background Paper to the motion here - http://2joz611prdme3eogq61h5p3gr08.wpengine.netdna-cdn.com/wp-content/uploads/2013/09/Banking-reform-motion-GP-Conf-Autumn-2013-Background-Paper-submitted.pdf
Check out some Frequently Asked Questions about full reserve banking here -