Resurgent bank lending supporting recovery: ECB

Brussels - Businesses' demand for bank loans is resurgent in the eurozone as cheaper credit makes new investment projects more attractive, and this will support an economic recovery, ECB president Mario Draghi said on Monday.

Speaking to European lawmakers in Brussels, Draghi said the ECB's deployment of monetary stimulus policies was accelerating the transmission of lower interest rates through the entire financial system.

"As bank lending rates are being reduced, new investment projects - previously considered unprofitable - become attractive," he said. "In the short-run, this should sustain the demand for credit and investment."