What were the "Pet Banks" in the context of Andrew Jackson's presidency?

"Pet Banks" were state banks that received federal deposits during Andrew Jackson's presidency, particularly following his opposition to the Second Bank of the United States. After successfully advocating for the withdrawal of federal funds from the national bank, Jackson distributed these funds to various state-chartered banks, which he favored and termed "pet banks." This move was part of his broader effort to reduce the power of the federal banking institutions and promote a more decentralized banking system. The term reflects Jackson's preference for certain banks over others, essentially designating them as trusted financial institutions for the federal government's funds. This action contributed to significant economic changes and instability in the banking system during that period, ultimately leading to the Panic of 1837.