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Draghi Says System Is Back to Normal When Banks Resume Lending

European Central Bank President Mario Draghi said the system will return back to normal when euro-region banks resume lending to each other.

“You have parts of the euro area where credit is more or less normal but also parts where credit is seriously contracted,” Draghi said at the World Economic Forum in Davos, Switzerland, today. “One key thing, we have to see a reactivation of the interbank market, we have to see that banks trust each other to the point where they go back to lending to each other and don’t have to go through” the ECB.

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