Scholars, with the benefit of hindsight, have suggested that an easier stance of monetary policy in 1930-32 and an aggressive use of the discount window in 1933 could have made a significant difference. To be sure, there were insolvent banks with poor assets.
But, at some stage, depositors, fearful of losing the race to others, rushed to their bank for the liquidity that even the solvent banks could not provide. When that occurred, not only did many banks fail, but the surviving banks husbanded the sought-after liquidity and simply ceased to fulfill their reason for being, to take risk by making loans.