World’s Top Bankers to Meet in Philadelphia

The accelerating consolidation of European banks likely will command the spotlight as the world’s top bankers meet in Philadelphia this week for the International Monetary Conference. After the creation of Europe’s single currency Jan. 1, European banks are merging more frequently as they brace for heightened competition and expand into neighboring countries. Bankers also will discuss a proposal by central bankers to change the way they set aside capital for different lending risks. The main annual meeting of international bankers will feature speeches by John Reed, chairman and co-chief executive of Citigroup, and Rolf Breuer, chief executive of Deutsche Bank. On Wednesday, the bankers will hold closed-door meetings with six central bankers, including Alan Greenspan of the U.S. Federal Reserve and Willem Duisenberg of the European Central Bank. Last week, the world’s central bankers suggested that banks hold more than seven times as much capital for loans to the riskiest borrowers--those with junk-bond ratings--than for companies with the highest credit ratings.