U.S. regulators said on Wednesday that the nation's largest banks that were found to have the need to raise more capital in the "stress tests" will have one month to develop the plan.
After the details of the "stress tests" are released on Thursday afternoon, any banks needing to augment its capital buffer will have until June 8 to develop a detailed capital plan, and until Nov. 9 to implement that capital plan, said the regulators.
"Over the next 30 days, any bank holding company (BHC) needing to augment its capital buffer will develop a detailed capital plan to be approved by its primary supervisor, in consultation with the FDIC, and will have six months to implement that plan," said a joint statement released by Treasury Secretary Timothy Geithner, Federal Reserve Chairman Ben Bernanke and FDIC Chairman Sheila Bair.
U.S. media have reported that about half of the 19 largest U.S. banks will be told to raise more capital after being "stress tested" by the government.
Citigroup, Bank of America, Wells Fargo and JPMorgan Chase are reported to be among those who will have to boost their reserves.
But Bernanke on Tuesday ruled out the possibility of a new round of massive bailouts to save the U.S. banking giants.
"I've looked at many of the banks and I believe that many of them will be able to meet their capital needs without further government capital," Bernanke told the Congress' Joint Economic Committee.
In Wednesday's joint statement, U.S. regulators also vowed to support the banks if necessary.
"A strong, resilient financial system is necessary to facilitate a broad and sustainable economic recovery," said the statement.
"The U.S. government reaffirms its commitment to stand firmly behind the banking system during this period of financial strain to ensure it can perform its key function of providing credit to households and businesses," it added.
(Xinhua News Agency May 7, 2009)
