The Federal Reserve said Tuesday that big banks seeking to pay back government aid could start doing so by June, according to a Fed spokesperson.
Banks seeking to repay aid received under the Troubled Asset Relief Program, or TARP, will be required to provide supervisors with additional information supporting the repayment requests.
Once the information has been reviewed announcements will then be made by around June 8.
Under the rules governing the operation of the bailout fund, banks that receive assistance can make repayments as long as they prove to their primary regulator that repaying the capital injections will not jeopardize their safety and soundness.
The banks also must show their ability to replace the funds by raising capital without guarantees from the Federal Deposit Insurance Corp.
The Fed’s decision would then be subject to approval by the Treasury Department and then bank would be allowed to return the funds.
Bailout funds are supervised by the Treasury.