Do note, however, that giving up on a growth-based economy is equivalent to ending the consumer economy as we know it. The key reason we have this tremendous, constant, seemingly endless out-pouring of books, tools, entertainment, and so forth is due to the inflationary design of the economy actively encouraging investments and production to abundance. Once we eliminate debt, interest, and fractional reserve, the incentives to lend, borrow, and create money basically disappear. This will have a natural side effect of killing inflation off entirely. (The one exception would be if the state were to itself flood the market with new money, as would be possible with basic minimum income or negative income tax policies.)
The likely outcome of suddenly crushing the banking system without introducing any new powerful state policy is the economy entering a deflationary spiral. Companies not being able to borrow would cause delays and retraction of expansionary business decisions. They'd also be more likely to look for ways to increase profit in order to free capital for the future (since now they need to save first). This would encourage cutting all non-essential and non-obviously-functional employees, especially in large organizations where roles are unclear. The loss of business expansion combined with staff cuts would effectively take a lot of money out of the economy. This would combine and cascade with the effect from loss of personal loans. Contraction is almost guaranteed (again, without some form of government program which counteracts the effects).
Some, myself included, would argue that it's essentially inevitable for an exponentially growing, centrally managed, debt-and-inflation driven society to collapse. It's a matter of "when" rather than "if". It is certain that all previous civilizations have collapsed. Though this may seem tautological or circular, it can be better rephrased as "all civilizations collapse within X years" where the total lifetime is measured in at most centuries. While we can argue about their causes of collapse, many of them appear to be related (directly or indirectly) to inability to grow and expand exponentially any further.