What was impact of economic crisis on US bank
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The Great Depression on 1929 had serious effects on US banks. Due to the depression, many businesses became bankrupt. They could no longer repay the money that they had borrowed from banks. As a result, banks lost all that money. Banks had lent that money from the deposits that they had obtained from the common people. When banks could not recover their loans, they could not honour their promise of returning the deposits to depositors. As a result, many banks collapsed in a situation known as a bank run.
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