As a response to the bank failures of the Great Depression, a system of federal deposit insurance was established to strengthen the banking system.
The Great Depression was a worldwide economic depression that took place during most of the 1930's. Still to this day, is deemed the worst economic shutdown in history. Federal Deposit Insurance (FDIC) is a system that insures those putting money into a bank or financial institution protection. When you are joining a bank, they will let you know if they are a member of the FDIC- which gives a consumer added protection.
