Pay policies for bank employees across the United States would require approval from the U.S. Federal Reserve as part of a proposal to curb risk-taking at financial institutions, The Wall Street Journal reported, citing people familiar with the matter.

Under the proposal, the Fed could reject compensation policies that it feels encourage employees to take excessive risks, the paper said.

The final proposal, which requires approval by the Fed's board, is still a few weeks away from completion and could be revised, the paper said.

On Thursday, European Union leaders agreed to seek curbs on bankers' bonuses at next week's G20 summit.

Under the Fed proposal, bureaucrats would not set the pay of individuals but would review banks' salary and bonus policies and make changes if necessary, the Journal said.

The Fed could be immediately reached for comment on the report.

(Reporting by Santosh Nadgir in Bangalore; editing by John Wallace)