Which U.S. banking law of 1933 introduced federal deposit insurance?
Answer
Banking Act of 1933
The Banking Act of 1933 introduced federal deposit insurance in the United States by creating the Federal Deposit Insurance Corporation. President Franklin D. Roosevelt signed the law during the banking crisis of the Great Depression.
The act initially authorized temporary deposit insurance, with the FDIC beginning operations in 1934. It protected eligible deposits up to a specified limit and aimed to restore public confidence after widespread bank failures and deposit withdrawals.
The Banking Act of 1933 also contained the provisions commonly known as Glass–Steagall, which separated commercial and investment banking. It is distinct from the Emergency Banking Act of 1933, an earlier measure that addressed the immediate bank holiday and reopening process.