The largest U.S. banks seeking permission to re-pay the government aid received will have to meet some conditions the Federal Reserve said on Monday.

Banks must be able to issue debt without a guarantee from the Federal Deposit Insurance Corp., demonstrate an ability to continue lending to creditworthy borrowers, possess sufficient capital and gain the approval of their primary regulator, the Fed said.

The companies “must successfully demonstrate access to public equity markets,” the Fed said in a statement released today in Washington. They also need to sell debt without a Federal Deposit Insurance Corp. guarantee and reduce reliance on “government capital” and the FDIC’s program.

The list of banks approved for repayment will be announced next week.

Big banks such as JPMorgan Chase & Co, Goldman Sachs Group Inc, and Morgan Stanley, say they want to repay funds received under the government's $700 billion Troubled Asset Relief Program, or TARP.

The aid program was launched in the fall of 2008 by the government as the financial system buckled under the worst strains since the Great Depression.

The conditions reflect an attempt to ensure the nation’s largest lenders are strong enough to stand on their own before retiring the government’s stakes.

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