Treasury Secretary Timothy Geithner said on Tuesday that banks will be in a better position to resume lending as they pay back the unprecedented cash injections the government provided to keep them afloat during the financial crisis.

"As confidence in the financial system has been restored, we see private capital replacing government investments," he said. "As private investment comes in to replace the government’s investments banks will be … in a stronger position to lend," he said in remarks at the Treasury.