WASHINGTON - Federal regulators on Tuesday urged financial institutions to examine the newly proposed international capital rules carefully, and to pay particular attention to whether their complexity and regulatory burden would outweigh the benefits of their increased risk sensitivity.

The new rules, proposed by the Basel Committee on Banking Supervision on Jan. 16, would replace capital regulations that have been in place since 1988. The proposal would create three methods of setting regulatory capital. One would base banks' capital requirements solely on outside assessments of borrowers' creditworthiness. The other two would give a role to banks' internal risk-rating systems.

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