During the 1930s, with thousands of banks failing, the U.S. Congress created the Federal Deposit Insurance Corporation (FDIC) to provide insurance coverage for small deposits.

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The FDIC was created in 1933 during the Great Depression to restore trust in the American banking system; more than one-third of banks failed in the years before the FDIC's creation, and bank runs were common. The FDIC provides deposit insurance to depositors in U.S. commercial banks and savings institutions.

During the 1930s, with Thousands of Banks Failing, the U