Banks are lobbying U.S. policy makers for a delay of up to seven years from a provision requiring them to sell investments in private-equity and venture-capital funds, the Wall Street Journal reported, citing people familiar with the matter. Bank officials, trade groups and lawmakers are quietly pressing the Federal Reserve for a multiyear delay of the rule that limits their investments in private-equity and venture-capital funds, the Journal said.

The "Volcker Rule," part of the Dodd-Frank law, restricts banks' ownership stake in hedge funds and private equity funds.



Siegfired Layda | Getty Images

The rule prohibits banks from making speculative bets with their own money. A delay of the rule would affect large banks such as Goldman Sachs, JPMorgan Chase, and Morgan Stanley, the Journal said.

The private equity business has become less appealing in general to banks because of the 2010 Dodd-Frank financial reform law. The Volcker Rule, expected to be implemented in a few years, prohibits banks from investing in any fund they do not manage. Read MoreBig banks: Too bigto trust?—Dodd-Frank—Commentary Since the Volcker Rule was adopted, some banks have already made changes.

The Federal Reserve could not be reached for comment outside of business hours.