Question

Why were banks one of the first institutions to feel the effects of the stock market crash?

Answer 1

After the stock market crash, people went to banks to withdraw their money so they could circulate it back into the economy.

Answer 2

Banks were one of the first institutions to feel the effects of the stock market crash because investors quickly and all at once pulled their funds out of the banks--causing the famous "run on the banks" that plunged the US into the Great Depression.