New York: A US appeals court has handed President Donald Trump another defeat in his bid to keep his financial records secret, directing Deutsche Bank and Capital One to comply with subpoenas from congressional Democrats demanding the material.

A three-judge panel of the Manhattan-based 2nd US Circuit Court of Appeals rejected Trump's bid to block two House of Representatives committees from enforcing subpoenas to the two banks seeking the documents.

Lawyers for US President Donald Trump may appeal to the Supreme Court. Credit:AP

Trump had sued the two banks in an effort to prevent the disclosure of his financial records.

A lawyer for the Republican President immediately called the house subpoena for financial records "invalid as issued", and said Trump may appeal to the US Supreme Court.