WASHINGTON, Dec 22 (Reuters) - U.S. Treasury Secretary Timothy Geithner expressed confidence on Tuesday that the U.S. economy was on a solid recovery path, but said tight lending practices by banks still pose a risk.
'Right now, the real risk we face is that banks are not lending enough and not going to provide the capital businesses need to grow for the economy to strengthen going forward,' Geithner said in an interview on National Public Radio.
'The risk is that the pendulum having been too soft and easy on the lending side, the risk is that banks over-correct or that supervisors over-correct and that's something we need to lean against because the strength of recovery will depend in part on credit being available to businesses,' he added.
((Reporting by Glenn Somerville, Editing by Gary Crosse))
((glenn.somerville@thomsonreuters.com; +1-202-898-8377; Reuters Messaging: glenn.somerville.reuters.com@reuters.net)) Keywords: FINANCIAL/GEITHNER (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'Right now, the real risk we face is that banks are not lending enough and not going to provide the capital businesses need to grow for the economy to strengthen going forward,' Geithner said in an interview on National Public Radio.
'The risk is that the pendulum having been too soft and easy on the lending side, the risk is that banks over-correct or that supervisors over-correct and that's something we need to lean against because the strength of recovery will depend in part on credit being available to businesses,' he added.
((Reporting by Glenn Somerville, Editing by Gary Crosse))
((glenn.somerville@thomsonreuters.com; +1-202-898-8377; Reuters Messaging: glenn.somerville.reuters.com@reuters.net)) Keywords: FINANCIAL/GEITHNER (Multimedia versions of Reuters Top News are now available for: * 3000 Xtra: visit http://topnews.session.rservices.com * BridgeStation: view story .134 For more information on Top News: http://topnews.reuters.com) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.