National Credit Corporation

The National Credit Corporation was an organization created in 1931 by the Hoover administration to try to stop bank failure.^[1] The organization attempted to convince large surviving banks to loan money to failing banks as a solution to bank runs. Many large banks however did not believe that investing in failing banks would be secure, so most of them did not support the failing banks. Banks that did provide loans would require that the failing banks put up their most valuable assets as collateral, which would partially reimburse the losses of the loaning bank in case the borrowing bank could not repay the loan.

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