History The Great Depression Questions
The Great Depression had a significant impact on the banking industry. The stock market crash of 1929 led to widespread panic and a loss of confidence in the economy. As a result, many people rushed to withdraw their money from banks, causing a wave of bank failures. The banking system was not equipped to handle the mass withdrawals, leading to a collapse of the banking industry. Thousands of banks closed, wiping out people's savings and causing a severe financial crisis. The government responded by implementing reforms and creating the Federal Deposit Insurance Corporation (FDIC) to restore confidence in the banking system and protect depositors' funds.