Why did so many banks fail during the 1930?

Many banks failed during the 1930s primarily due to the Great Depression, which led to widespread economic instability and a significant loss of consumer confidence. As businesses collapsed and unemployment soared, borrowers defaulted on loans, eroding banks' assets. Additionally, the lack of federal insurance and regulation meant that bank runs—where depositors rushed to withdraw their savings—caused many banks to collapse under the pressure of sudden withdrawals. This crisis highlighted the vulnerabilities in the banking system, ultimately leading to reforms and the establishment of the Federal Deposit Insurance Corporation (FDIC).