The National Credit Corporation was an independent agency of the United States federal government established in 1931 to stem the tide of bank failures across the US.[1] The corporation served as an intermediary in the interbank lending market, loaning funds from its $500,000,000 banker's pool to banks on the verge of failure. While the corporation was successful in restoring the liquidity of banks on the verge of failure, factors such as the high rates of deflation and unemployment meant that the solvency of banks alone would be insufficient to restore public confidence in the economy.
In 1932 the corporation was replaced with the Reconstruction Finance Corporation, a federal lender of last resort with the broader scope of supporting state and local governments and making loans to banks, railroads, mortgage associations, and other businesses.