Draghi says confidence, not ECB, makes banks lend

31/05/2012 - 9:10

BRUSSELS (Reuters) - Market confidence and not European Central Bank support is the key to persuading banks to boost their lending activities, ECB President Mario Draghi said on Thursday.

When bank recapitalization problems emerge, governments should err towards doing too much rather than too little in response, Draghi told the European Parliament.

(Reporting By Marc Jones and John O'Donnell; Editing by John Stonestreet)