Fed wants more banks to divulge finances

/ Source: The Associated Press

The Federal Reserve wants a broader group of banks to provide details each year about their finances, part of an effort to ensure banks can meet their capital requirements and avoid another financial crisis.

The Fed currently requires the nation's 19 largest banks to submit capital plans annually. The proposal would expand the list to the 35 largest by requiring banks with assets of $50 billion or more to submit annual plans.

Capital is the amount of reserves that a bank holds as a cushion against losses.

The central bank is taking comments on the proposal through August and then will decide whether to implement it. The financial overhaul law passed last year directed federal regulators to do a better job monitoring the level of capital banks have on hand.