Daniel Tarullo - Member of the United States Federal Reserve Board of Governors
The Federal Reserve (Fed) has given the go-ahead for the capital plans of most banks in the US.
According to the central bank, the majority of lenders boast balance sheets that are strong enough for their proposals for payouts to shareholders to be granted the green light.
The Fed approved the plans of 16 of the 18 banks considered, with Ally Financial and BB&T being the two financiers that saw their strategies rejected.
Daniel Tarullo, governor of the Fed, said: "Now in its third year, the Federal Reserve's review of capital plans provides a regular, structured and comparative way to promote and assess the capacity of large bank holding companies."
Mr Tarullo noted this approach helps to create better understanding and management of capital positions, with risk-measurement practices in particular being placed under the spotlight.
Despite Goldman Sachs and JP Morgan Chase seeing their plans gaining approval, they have been asked to modify the proposals by the end of the third quarter.
By Asim Shah