European banks will need to raise US$140 billion.

European Union finance ministers are close to an agreement to force banks to raise just over 100 billion euros ($140 billion) to ensure institutions have sufficient reserves to withstand further losses from Greek bonds and market turbulence, an official familiar with the matter said.

European leaders are expected to decide at Sunday's summit whether they will require more capital from banks. The source provided the information on condition of anonymity because discussions are still ongoing.

Although the amount is higher than suggested by recent press reports, it will likely disappoint some analysts. A report by the International Monetary Fund (IMF), for example, called for up to 200 billion euros (US$280 billion) to be injected into banks.

The new rules would force banks that are important to the financial system to increase their core capital ratios to 9%, compared to the 5% to 6% ratio required for institutions to pass stress tests conducted in the middle of this year. The measure assesses the amount of capital banks hold in relation to their risk-deductible assets.

The recapitalization of banks and the reduction of Greek debt are critical points for resolving the eurozone debt crisis, which has recently threatened to engulf larger economies such as Italy and Spain, and has been limiting economic growth in Europe and the world. This information comes from the Associated Press.