Consumer confidence in the banking industry continues to bounce back from recent low levels, according to new Morpace survey tracking data.

Forty-one percent of consumers now say they are "very confident" in the "financial strength of banks in general," up significantly from 36 percent in March and well above the 32 percent where this key measure bottomed in January. Confidence in banks is nearly back to the level observed last September, just prior to onset of the financial system crisis, when the proportion of consumers who professed to be "very confident" stood at 44 percent.

"In addition to all of the cash being infused into the banking system by the Federal Government, the higher confidence numbers also likely reflect the relatively positive news from the government stress tests released the week before May's survey took place," said Tim Taylor, Vice President, Morpace Financial Services. "If confidence continues to increase at this same rate, we may expect to see it return to pre-crisis levels by July of this year - presuming there is no major negative news in the financial sector."

Meanwhile, when consumers more narrowly focus on their primary personal bank, 67 percent now claim to be "very confident" in that bank's financial strength. This maintains the March level and represents significant improvement from January's 61 percent low point in confidence.

Morpace Omnibus Study interviews were completed May 14-19 with 1,000 consumers selected from an Internet panel of adults aged 18 and over. The sample's demographic profile reflects the U.S. population.

In the survey, consumers were asked "How confident are you in the financial strength of banks in general?" and "How confident are you in the financial strength of your primary personal bank?" Ratings of eight, nine or ten on a 10-point scale indicate "very confident" consumers.