Jeff Lacker, the president of the Federal Reserve Bank of Richmond, pointed to the financial services sector Wednesday as a sign that the economic outlook is improving.

"Many major banks have sold stock successfully and now have the capital to support new lending, even if conditions turn out worse than expected," he told the Chamber of Commerce in Danville, Va. "Although many borrowers face tougher credit terms in a soft economy, the banking system as a whole appears capable of supporting business investment and expansion."

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.