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Discuss the “bank holiday” implemented by president Roosevelt during the Great Depression. What was it’s purpose?...

Discuss the “bank holiday” implemented by president Roosevelt during the Great Depression. What was it’s purpose? What were the effects? Explain plz
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Soon after taking oath of presidentship of US, President Roosevelt during the great depression announced bank holiday. President got bill named Emergency Banking Act passed through congress. Banks with significant chances of being ruined were closed for few days so that people could not withdraw their money. Bank run was leading to failure of many banks. by 1931, over 5000 banks had failed.

Purpose of bank holiday was to save banking sector by reining in bank run.

Government initiative of bank holiday was successful in saving banks from failure. Government gradually started to open banks with sound financia position. Holidays for banks with unsound financial positions were extended.

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