The economic depression following World War 1 led to financial difficulties for several Norwegian savings banks.
The Savings Banks' Guarantee Fund was established in 1921. Membership was originally voluntary for the savings banks. The fund was to be used to support failing savings banks. Through the Savings Bank Act of 1924, the fund scheme became statutory and mandatory for all savings banks.
The Savings Banks' Guarantee Fund was unable to provide the necessary support to counteract the difficulties of the savings banks in the 1920s and 30s. In 1932, an additional guarantee fund was therefore established for savings banks, and in 1934 an "intermediate loan fund". From 1924 to 1939, there were between 8 and 43 banks that received annual support from the fund.
When it came to the commercial banks, in 1924 the Parliament passed an invitation to the government to sort out the issue of setting up a guarantee fund for so-called joint-stock banks as well. The Private Joint-Stock Banks' Guarantee Fund was established in 1938 as a voluntary guarantee fund for commercial banks.