The Fed told banks in 2009 to cut or halt dividend payments and raise more capital as the collapse of the US housing sector set off a chain reaction that devastated bank assets.

Nearly 350 large and small banks were forced to shut down since 2008, and the government intervened with hundreds of billions of dollars to protect the largest institutions.

Friday the central bank said stress tests and reviews of bank capital planning showed that some, though not all, of the top 19 banking firms were strong enough to begin sending returns to shareholders.

It said that a $300 billion increase in shareholder funds in the 19 had underpinned a "significant improvement in both economic conditions and the capital positions of financial institutions."

It also cited the impact of strengthened regulations under the Basel II international agreement on bank capital rules.

"Overall, both the quantity and quality of capital at many large bank holding companies have improved since the financial crisis," the Fed said.

Without specifying any of the 19, it suggested that some were not financially strong enough to resume dividend payouts, and said others might have limitations related to capital strength that would keep a cap on how much could be paid out at this time.

It also said the banks should not pay out more than 30 percent of anticipated earnings, and warned them to continue building their capital bases.