Banks will face the possibility of tougher requirements, including possible higher capital standards, if they have not fixed the shortcomings in their “living wills” by October, Federal Reserve Chairwoman Janet Yellen said Tuesday.

Appearing before the Senate Banking Committee, Yelllen was quizzed about the five megabanks that were told in April that they did not have credible plans for failing without the government getting involved. She told lawmakers that she would consider higher capital requirements or other penalties if the banks fell short of an October deadline to correct the problems identified in their living wills.