What happened to the US banking sector after the stock market crash?

After the Stock Market crash of 1929, the US banking sector faced a severe crisis characterized by widespread bank failures and loss of depositor confidence. Many banks, heavily invested in the stock market, were unable to recover their losses, leading to a wave of closures. This instability prompted the government to implement reforms, including the establishment of the Federal Deposit Insurance Corporation (FDIC) in 1933 to protect depositors and restore trust in the banking system. Ultimately, the crash contributed to the Great Depression, significantly reshaping banking regulations and practices in the US.