BASEL, Sept 13 (Reuters) - New more stringent capital requirements for banks will not hamper global recovery and should put the economy on a more solid footing, European Central Bank Governor Jean-Claude Trichet said on Monday.
Trichet, speaking as chair of talks on the global economy at a Bank for International Settlements meeting, said officials agreed more work is needed to improve the global banking system after they agreed on the new banking regulation rules on Sunday.
"With this decision taken here yesterday we eliminate uncertainty in a large area which is a major contribution in consolidating the global economy.
"It's work in progress. We have hard work to do."
The new requirements agreed on Sunday, known as Basel III, will demand banks hold more top-quality capital but a long lead-in time to make the adjustment eased fears that lenders will have to rush to raise capital. [ID:nLDE68B0BP]
"We have transition arrangements which will enable banks to meet these standards while supporting the economy on recovery," Trichet said.
He said that advanced countries' growth would continue to trail that of the developing world but saw no risk of deflation ahead.
Central bankers attending the bi-monthly talks included U.S. Federal Reserve head Ben Bernanke and People's Bank of China chief Zhou Xiaochuan.
(Additional reporting by Catherine Bosley) (Reporting by Natsuko Waki and Sakari Suoninen; editing by Patrick Graham)