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EU Finance Chiefs Agree On Proposed Bank Rules

European Union finance ministers have agreed on proposed new rules covering the rescues of failing banks.

The proposed measures, agreed on June 27 during some seven hours of talks in Brussels, call on bank shareholders, bondholders, and depositors with more than 100,000 euros ($130,000) to share the burden of saving a bank.

Depositors with less than 100,000 euros would be forced to start paying for a bailout only after losses rise above 8 percent of a bank's total liabilities.

The proposals must still be adopted by the European Parliament. The agreement came ahead of the start of a two-day summit of EU leaders.

Establishing a new banking regulation structure is seen as an important part of restoring financial and economic stability to the eurozone following the 2008 financial crisis.

Based on reporting by AP, AFP, dpa, and Reuters