Answer · confidence: thin

What did FDIC records from 1933 show about banks' real reserves versus legal minimums?

Research question: What do the internal records of the Federal Deposit Insurance Corporation (FDIC) from its creation in 1933 reveal about the actual reserve levels held by banks compared to the legal minimums?

The verified facts do not include any FDIC internal records or any comparison of actual bank reserves with legal minimums, so the question is only partly addressed ¹². After the FDIC was created in 1933, almost no bank runs occurred, which Wilcox cites as a reason bankers would not need to hold massive excess reserves against runs after 1934 ¹. Separately, the fall in interest rates can account for 80 percent of the movement of excess reserves during the Great Depression ². The newest fact comes from a 1984 source, so it is about four decades old as of October 2026 and reflects historical rather than current conditions ¹².

Checked 2026-10-23. Only documented and supported facts are used.

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Sources

[1] supported

After the FDIC was created in 1933, there were almost no bank runs, which Wilcox cites as a reason bankers would not need to hold massive excess reserves against runs after 1934.

"After the creation of the FDIC, there were almost no bank runs."

Excess Reserves in the Great Depression (1984)

[2] supported

The fall in interest rates can account for 80 percent of the movement of excess reserves during the Great Depression.

"The fall in interest rates can account for 80 percent of the movement of excess reserves during the Great Depression."

Excess Reserves in the Great Depression (1984)