Washington - The crisis-ridden US finance system is making strides on the way to recovery, US Treasury Secretary Timothy Geithner said Wednesday.

"There are important indications that our financial system is starting to heal," Geithner told the Senate banking committee.

He said that there has been a "substantial amount of adjustment" under the drastic interventions with US government funds and "the most vulnerable parts of the non-bank financial system no longer pose the same risk."

In addition, he said that banks "are funding themselves more conservatively." (dpa)