What happened to the banks in the great depression?

Answer 1

Many businesses and banks were forced to close during the economic collapse. The number of business failures were very high and the total number of banks fell by about one third during five years, either through merger, failure, or voluntary liquidation.

Answer 2

the most pressing problems were economic, especially the foreclosures on home, ranch, and farm, and the failure of some of the banks. The Emergency Banking Act closed all the banks until federal examiners could determine which banks were sound. Weak banks were identified and eliminated. Sound banks were granted loans from the Federal Reserve System so they could stay in business. The fact that the government allowed some banks to reopen instilled confidence in the people and they stopped trying to withdraw all their money from the bank.

Answer 3

In the 1930's the US was in a major depression. Other nations were affected as well. In the US, many banks failed because the loans they had made to other businesses could not be repaid as the debtors were out of business. In this situation, the non performing loans, prevented banks from keeping their own debt obligations to individuals and to bank bond holders. The result was the end of many banks and thousands of people lost their savings, making the depression even worse.

Answer 4

yes