1.Introduction During the onset of the Great Depression in the United States, several banks became insolvent as a result of runs on the bank, where a large number of depositors withdrew their funds, causing banks to suffer from cash-flow problems and eventually become insolvent.It is believed that several banks that had sufficient but illiquid assets became insolvent and contributed to the widespread economic turmoil that lasted from the early 1930s to the 1940s.The collapse of banks played a role in the economic turmoil that followed because banks hold large deposits and are vital to providing capital and facilitating transactions.