How did the stock market crash provoke a banking crisis?

The Stock Market crash of 1929 led to a significant decline in asset values, causing widespread panic and a loss of confidence among investors and depositors. As stock prices plummeted, banks that had heavily invested in the market faced enormous losses, leading to insolvency for many. Consequently, depositors rushed to withdraw their funds, triggering bank runs and forcing banks to close, further exacerbating the financial instability. This crisis eroded trust in the banking system and contributed to a broader economic depression.