JPMorgan is $12.5 billion short of what the Fed wants it to have

Daniel tarulloAlex Wong GettyThe Federal Reserve’s Dan Tarullo could impose tougher requirements on Wall Street’s biggest banks.

The Federal Reserve is calling upon U.S. banks to keep more cash on hand.

On July 20, the Federal Reserve announced it will require eight banks to keep $US200 billion on hand as part of a plan to keep a global financial collapse at bay in the event of a capital emergency.

Most U.S. banks are already in compliance with the rules, but JPMorgan is facing a $US12.5 billion shortfall for the compliance procedures.

This could be due to the fact that JPMorgan faces the largest risk-based capital surcharge.

A report in the Financial Times said Daniel Tarullo, the Fed governor in charge of supervisory tests, may elect to use them as part of the central bank’s stress tests for systemically important financial institutions.

The other banks subject to the Federal Reserve requirements are Citigroup, Goldman Sachs, Morgan Stanley, Bank of America, Wells Fargo, State Street and Bank of New York Mellon.

NOW WATCH: What Adderall is actually doing to your body

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.