UPDATE 1-EU strikes political deal on bank reform, few technical details remain

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* Reform needs final OK on technical details by year-end

* Banks to face new capital, loss-absorption requirements

* Partly deviates from global standards, includes waivers

* New rules include deposit freeze for crisis banks (adds details of the deal, context)

BRUSSELS, Dec 4 (Reuters) - European Union finance ministers reached a political agreement on Tuesday on a major reform of banking rules that set the level of buffers banks must raise to absorb losses and introduce new capital requirements to strengthen financial stability.

The overhaul, proposed by the European Commission in November 2016, reformed EU rules to address some of the loopholes exposed by the global financial crisis.

Some technical details of the deal now need to be finalised by the end of the year, with talks due later on Tuesday with the European Parliament, Austrian Finance Minister Hartwig Loeger said at the end of a ministerial meeting in Brussels.

The agreement came after two years of negotiations and adapts EU banking rules to agreements reached at global level with United States and Japanese regulators, although the draft agreed text includes tweaks to global standards and a large number of waivers for banks and EU states.

"About 90 percent of the text is agreed but there are all kinds of minor issues that need to be tidied up," an EU official said.

The 28 EU states had already reached a compromise on the reform in May but changes made by the European Parliament on the legislative text have required further talks.

In a public session, several ministers raised doubts about tweaks to the rules made by parliamentarians but said they were confident the final text could address their concerns.

Under the reform, European banks will have to abide by a new set of requirements aimed at keeping their lending in check and ensuring they have stable funding sources.

EU lenders will be required to hold a 3 percent leverage ratio to increase their financial stability.

Banks will also have to meet a Net Stable Funding Ratio (NSFR) aimed at limiting excessive reliance on the type of short-term funding that was among the causes of the global financial crisis. (Reporting by Francesco Guarascio; Editing by Alison Williams and Alexander Smith)