The Reserve Bank has broad resolution powers over commercial banks under the Banking Regulation Act. DICGC, being a wholly owned subsidiary of the Reserve Bank, works in close coordination with the central bank to offer protection to small depositors. 12.
According to the Federal Reserve’s flow of funds accounts, household net worth peaked in the second quarter of 2007 and then fell approximately 28 percent during the next two years (figure 1). The initial shocks to housing and to financial assets wiped out most of the wealth gains realized since the aftermath of the tech crash in 2001.