That should give managements of even the weakest banks enough time to meet the Fed's new levels.

The Economy New standards for banks take effect today and require tougher and swifter regulatory action against the weakest banks.

In the short run, this can be addressed through an emergency increase in the money supply and a weeding out of the weakest banks.

Moreover, in strengthening the performance of the weakest Japanese banks, quantitative easing may have had the undesired impact of delaying structural reform.

The changes that were postponed were expected to set off a flight of depositors from the country's weakest banks toward stronger, more solvent institutions.

But analysts say several of the weakest banks may not survive the fiscal year anyway unless the government acts soon.

The issue of what to do with the nation's biggest and weakest banks has become crucial, and it has helped drag down stock prices in recent weeks.

Many economists and pundits have argued that the only solution is to nationalize the weakest big banks, wiping out shareholders and management.

They also raise the possibility that the government may be forced to recapitalize the weakest banks if they continue to struggle.

A new, high interest rate on such loans puts pressure on the weakest banks to pay off their debts or close their doors.