Fed wants yearly capital plans from 35 biggest banks

NEW YORK (CNNMoney) -- The Federal Reserve is considering new rules that would require the nation's 35 largest banks to submit their annual capital plans for review.

But before the Fed makes a final decision, the central bank wants the public's input on the rules.

The proposed regulations would require any U.S. bank with more than $50 billion in assets to submit capital plans to the Fed each year. As of the end of March, 35 large banks fit that bill.

The goal is to force those banks to plan ahead for tough times.

"Institutions would be expected to have credible plans to have sufficient capital so that they can continue to lend to households and businesses, even under adverse conditions," the Fed said Friday in a press release.

Currently, only 19 banks with $100 billion or more in assets are required to pony up capital plans for the Fed's scrutiny.

Under the rules, banks would need to show that they'll be able to maintain a buffer of at least 5% of their capital on the sidelines, for times of economic stress.

That 5% rule comes as a relief to Wall Street banks, because it's even lower than international guidelines adopted at Basel III last year, which require banks to hold a capital cushion of 7%.

Public comments are due by Aug. 5 and can be submitted via the Federal Register's website at www.regulations.gov.

The proposed rules are listed under the ID number: FRS-2011-0150.