Why did so many banks fail during 1930?

Many banks failed during 1930 due to a combination of factors, including the Great Depression's economic downturn, which led to widespread unemployment and reduced consumer spending. A loss of confidence among depositors resulted in bank runs, where people rushed to withdraw their savings, ultimately depleting banks' reserves. Additionally, banks had invested heavily in the Stock Market and real estate, both of which collapsed, further exacerbating their financial instability. The lack of federal insurance for deposits also contributed to the panic and subsequent failures.