The Emergency Banking Relief Act was a 1933 law that gave the U.S. government power to shut down failing banks and reopen sound ones

The Emergency Banking Relief Act, passed on March 6, 1933, was a federal law that let President Franklin D. Roosevelt declare a nationwide bank holiday and take control of the banking system. The law gave the government authority to examine banks, decide which ones were safe to reopen, and prevent the collapse of the entire financial system during the Great Depression. Banks that passed inspection reopened; those that did not remained closed, and depositors lost access to their money.

This was not a refund program or a payment to individuals. It was a structural intervention into how banks operated. If you are researching this law because you have money in a closed bank or you inherited an account from that era, the path forward depends on when the bank closed and what happened to its assets.

Key Takeaways

  • The Emergency Banking Relief Act of 1933 gave the federal government power to close banks and reopen only those deemed financially sound.
  • The law did not return money to depositors whose banks failed; it was designed to stabilize the system, not compensate individuals.
  • The Federal Deposit Insurance Corporation (FDIC), created later in 1933, eventually became the mechanism for protecting deposits and paying out closed-bank claims.
  • If you have a claim related to a bank that closed during or after 1933, the FDIC or your state banking authority holds the records and processes any remaining payouts.

Why the law was passed and what it did

By early 1933, the U.S. banking system was in collapse. Thousands of banks had failed since 1929, and depositors were withdrawing cash in panic, which accelerated the failures. Roosevelt took office on March 4, 1933, and two days later Congress passed the Emergency Banking Relief Act. It authorized the President to declare a bank holiday—a temporary shutdown of all banks nationwide—and gave the Treasury Department and the Comptroller of the Currency power to examine every bank and decide which could safely reopen.

Banks that reopened were those the government determined had sufficient assets to cover deposits. Banks that did not pass inspection remained closed. Depositors in closed banks could not access their money. There was no federal deposit insurance yet, so most people lost their savings. The law stabilized the system by removing the weakest institutions and restoring confidence in those that remained open, but it did nothing to compensate individuals for losses.

How the FDIC changed what happened to closed banks

Later in 1933, Congress created the Federal Deposit Insurance Corporation (FDIC) to prevent future catastrophes. The FDIC insures deposits up to a set limit (currently $250,000 per depositor per bank) and takes over closed banks to pay out insured deposits. When a bank fails today, the FDIC steps in, sells the bank's assets, and pays depositors from the insurance fund or asset sales.

The FDIC did not exist during the 1933 bank holiday, so depositors in banks that closed then had no federal protection. However, the FDIC has since taken over many failed banks and processed claims on old accounts. If you are trying to recover money from a bank that closed in 1933 or shortly after, the FDIC may have records of the closure and any payouts that were made. Your state banking authority may also hold historical records.

What to do if you have a claim from a closed bank

If you believe you or a family member had money in a bank that closed during the 1933 bank holiday or in the years immediately after, start by contacting the FDIC's Division of Resolutions and Receiverships. You will need the name of the bank, the city and state where it was located, and ideally the approximate date it closed. The FDIC maintains a database of failed banks and can tell you whether it holds records of that institution.

If the FDIC does not have the records, contact your state banking authority or the state's department of financial regulation. Many states kept records of bank closures and the disposition of deposits. You may also find information through the bank's successor institution—some closed banks were absorbed by other banks, and the successor may have inherited the old accounts.

Be aware that most claims from the 1933 era are long past any statute of limitations for recovery. If a bank closed in 1933 and no payout was made, the money was likely distributed to creditors or the state decades ago. However, it is worth checking, because some accounts were never claimed and occasionally unclaimed property offices still hold funds.

Unclaimed property and old bank accounts

If a bank closed and depositors never claimed their money, the funds may have been turned over to your state's unclaimed property program. Each state maintains a database of unclaimed money, including old bank deposits. You can search for unclaimed funds at MissingMoney.com, which is run by the National Association of Unclaimed Property Administrators (NAUPA) and searches multiple state databases at once.

Search using the name of the depositor (the person who owned the account) and the state where the bank was located. If you find a match, follow the state's process to file a claim. Most states require proof of ownership, such as a death certificate if the original depositor has passed away, or documentation showing you are the heir. The process varies by state, but most do not charge a fee to claim your own money.

How to find records of a specific closed bank

The FDIC maintains a public database called the Failed Bank List, which you can search online at fdic.gov. Enter the name of the bank and the state, and the database will show you the closure date, the city, and which institution took over its assets (if any). The FDIC database goes back to 1934, so banks that closed during the 1933 holiday may not appear there—those records are held by the Comptroller of the Currency or your state banking authority.

For banks that closed before 1934, contact the Office of the Comptroller of the Currency (OCC) at occ.treas.gov or call 1-800-613-6743. The OCC has historical records of national banks that closed. For state-chartered banks, contact your state's banking regulator directly. You can find contact information through your state's secretary of state office or by searching "[your state] department of banking."

What the Emergency Banking Relief Act did not do

The law did not create a refund program, a compensation fund, or a mechanism to return money to depositors. It was an emergency measure to stabilize the banking system by closing weak banks and reopening strong ones. Depositors in closed banks lost their money unless the bank's assets were later sold and generated enough to pay claims, which was rare.

The law also did not apply to savings and loan associations, credit unions, or other financial institutions—only commercial banks. If you are researching a different type of institution, the rules and recovery processes are different.

Frequently Asked Questions

Can I recover money my grandparent lost in a bank that closed in 1933?

Possibly, but it is unlikely after 90 years. Most claims from that era were settled or abandoned long ago. However, check the FDIC's database and your state's unclaimed property office—some funds were never claimed and may still be held. You will need proof that your grandparent owned the account, such as a will or bank statement.

What is the difference between the Emergency Banking Relief Act and FDIC insurance?

The Emergency Banking Relief Act was a one-time 1933 law that shut down and reopened banks. FDIC insurance, created later in 1933, is an ongoing program that protects deposits up to $250,000 per account if a bank fails today. The FDIC did not exist during the 1933 bank holiday, so depositors then had no protection.

Where do I learn about my bank is FDIC insured?

Ask your bank directly, or search the FDIC's Bank Find tool at fdic.gov. Most banks are FDIC insured, but some are not. If your bank fails and it is FDIC insured, the FDIC will pay your deposits up to $250,000 per account category.

What happens to money in a bank account if the bank closes today?

The FDIC takes over the bank, sells its assets, and pays out insured deposits (up to $250,000 per depositor per account category) from the insurance fund or asset sales. Uninsured deposits may receive partial payment if assets are sufficient, but there is no may provide. This is very different from 1933, when there was no insurance at all.