Why did us bank failures reached around 600 per year in the early 1930s?

The U.S. bank failures reached around 600 per year in the early 1930s primarily due to the Great Depression, which triggered widespread economic instability and a loss of public confidence in financial institutions. Many banks had invested heavily in the Stock Market and real estate, and when these sectors collapsed, they faced significant losses. Additionally, the lack of federal insurance for deposits led to bank runs, where panicked customers withdrew their savings, further exacerbating the crisis. The combination of poor lending practices, economic downturn, and inadequate regulatory oversight resulted in a wave of bank failures during this period.