Emergency Banking Act of 1933

The Emergency Banking Act of 1933 was a law enacted during the Great Depression to stabilize the U.S. banking system. It temporarily closed all banks to prevent further withdrawals and panic. The government then inspected and only allowed financially sound banks to reopen. This measure aimed to restore public confidence in banks, prevent bank failures, and promote economic recovery. It also gave the government more power to regulate and support the banking industry. Overall, the act helped restore trust in the financial system and laid the groundwork for ongoing banking reforms.