National Credit Corporation
The National Credit Corporation was an organization created in 1931 in the United States by the Hoover administration to try to stop bank failure stemming from the Great Depression.
The Corporation attempted to convince large surviving banks to loan money to failing banks as a solution to bank runs. Many large banks 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.
