Citigroup Inc may need to generate up to $10 billion in new capital to meet the requirements of the U.S. government’s stress tests, the Wall Street Journal reported on its website on Friday.

Like other banks and financial institutions, the bank is in talks with the Federal Reserve about whether it needs more capital, the Journal said, citing unnamed sources.

Citigroup may need less if regulators accept its arguments about its financial health. In a best-case scenario, Citigroup could have a roughly $500 million cushion above what the government requires, the paper reported.

Citigroup did not comment on the developments.

The government created the stress tests as a way to measure the capital needs of the nation’s 19 largest banks and their ability to withstand a variety of economic scenarios.