The new banking rules are designed to strengthen bank finances and rein in excessive risk-taking, but some banks have protested that they may dampen the recovery by forcing them to reduce the lending that fuels economic growth.
Forcing banks to keep more capital on hand will restrict the amount of loans they can make, but it will make them better able to withstand the blow if many of those loans go sour.
The rules also are intended to boost confidence that the banking system won't repeat past mistakes.
Under current rules, banks must hold back at least 4 percent of their balance sheets to cover their risks.
This mandatory reserve — known as tier 1 capital — would rise to 4.5 percent by 2013 under the new rules and reach 6 percent in 2019.
In addition, banks would be required to keep an emergency reserve known as a "conservation buffer" of 2.5 percent.
In total, the amount of rock-solid reserves each bank is expected to have by the end of the decade will be 8.5 percent of its balance sheet.
Representatives of the U.S. Federal Reserve, the European Central Bank and other major central banks agreed to the deal Sunday at a meeting in Basel, Switzerland.
It still has to be presented to leaders of the Group of 20 forum of rich and developing countries at a meeting in November and ratified by national governments before it comes into force.
Contributing: Associated Press writers Andrew Vanacore, Martin Crutsinger, Frank Jordans and Geir Moulson.
.tweetbutton { margin-top: -3px; margin-right:-18px; }Real Estate Outlook: After the CreditsBig banks prosper as small banks fail
