Regulators to work out new capital rules for banks as part of global financial reforms

Regulators to work out new capital rules for banks

BASEL, Switzerland — Financial regulators from around the world are meeting in Switzerland to finalize a deal that will require banks to hold more capital in reserve than they currently do.

The meeting at the Bank for International Settlements in Basel is a cornerstone of the global financial reforms proposed by governments following the credit crunch and subsequent economic downturn caused by risky banking practices.

Representatives of major central banks including Federal Reserve Chairman Ben Bernanke will debate how much money banks have to set aside in the future to cover their risks and by when the new rules should take effect.

The meeting starts Sunday and a deal is expected latest by Monday.

Any agreement will still have to be ratified by national governments.