A closed-door meeting of dozens of financial sector heavyweights on the sidelines of the World Economic Forum made some progress on bank capital requirements, participants said.
But the bankers and regulators skirted the issue of a global insurance levy to make sure that banks -- not taxpayers -- pay for future mistakes.
Larry Summers, economic adviser to U.S. President Barack Obama, who is under fire from Wall Street over his plans to curb big banks, said the "vigorous, constructive discussion" had raised the level of understanding.
In a public discussion on the world economy, Summers and International Monetary Fund chief Dominique Strauss-Kahn said growth was returning somewhat faster than expected but a better balance was needed between exporting and importing nations.
China's deputy central bank head, Zhu Min, told delegates the emerging economic powerhouse was working to achieve more balanced growth and boost domestic consumption this year.
Trade ministers from major economies, meeting on the sidelines of the annual Davos conference, voiced scepticism about prospects of completing a global trade liberalisation deal this year and some blamed the United States for foot-dragging. Washington sent only a deputy ambassador to the informal talks.
NO-DEAL ON LEVY
British finance minister Alistair Darling told Reuters the talks among bankers and regulators had reached some common ground and called for quick action to put areas of agreement into practice.
"Firstly we are agreed that whatever we do, it needs to be universal. You're dealing with a global banking system. You need a common approach across the world," he said.
"What has changed is there is an acceptance on the part of banks that they need to make changes and they need to make changes quickly because that is what people expect."
Referring to a Financial Times report that some top bankers had agreed on the need for a wind-down levy, Darling said this was "one of a number of ideas", but there was no agreement.
The head of the Financial Stability Board, Mario Draghi, said the idea of a global insurance levy was not even discussed but others said it was among ideas kicked around.
Brian Moynihan, chief executive of Bank of America
The IMF's Strauss-Kahn called for a speeding up of new rules on capital requirements for banks.
"The question of coordinating this financial sector reform is top priority. We're not going exactly in the right direction," Strauss-Kahn said in an oblique reference to Obama's proposals to bar commercial banks from proprietary trading and ties with hedge funds and private equity funds.
Summers and Zhu skirmished politely about global economic imbalances.
"Not everyone can have export-led growth," the White House adviser said. "Countries (that) traditionally have export-led growth desire to continue that growth; countries that have been substantial borrowers want to reduce that borrowing. There's a mismatch, It's serious... it's an adding up problem."
Zhu said China's purely export-led growth model was not sustainable but could not be changed overnight.
"We want to increase consumption but it will take some time," he said. "We need global coordination on structural change...for us to increase consumption and for others to increase consumption or to increase savings." - Reuters
