Franklin D. Roosevelt signed the Emergency Banking Act in March 1933 during the banking crisis that followed the 1929 stock-market crash.
Roosevelt took office on March 4, 1933, when thousands of U.S. banks had failed or suspended operations. He proclaimed a nationwide bank holiday, temporarily closing banks while examiners assessed their condition. Congress passed the Emergency Banking Act on March 9, and Roosevelt signed it that day.
The law strengthened federal control over banking and allowed the Treasury and Federal Reserve to support the reopening of financially sound institutions. Roosevelt explained the policy in his first radio “fireside chat” on March 12, urging depositors to return money to reopened banks.
The banking emergency was connected to, but not identical with, the stock-market crash. The market collapse began in 1929, while the most severe wave of bank failures occurred later. The act helped restore confidence, but broader recovery required additional measures and years of economic adjustment.