Trichet urges lenders to lend

European Central Bank President Jean-Claude Trichet urged banks to start lending again after policymakers put them "on the path" to recovery by pumping record amounts of cash into money markets.

"I expect the banks to normalize their relationships, meaning that they start lending to each other and that they lend to their clients," Trichet said in an interview on French radio RTL late on Sunday. The banking system is "on the path to normalization," he said.

The cost of borrowing dollars in London fell last week for the first week since July after the ECB offered lenders as many euros as they wanted and joined counterparts in promising unlimited dollars as well. Central bankers and governments have stepped up efforts to end the 14-month-old credit crunch that's threatening to tip the global economy into recession.