JPMorgan CEO sees "modest signs" of recovery

Dimon addressed the government stress tests, which U.S. banks with at least $100 billion in assets are undergoing in order to determine how they would withstand even more severe economic conditions. Regulators want to know how much capital or other aid they might need in the event of those economic conditions.

Dimon believes banks will survive the tests, which could help "create a lot of credibility within the system."

JPMorgan is among many institutions that received capital injections from the government, but like other bank CEOs, Dimon wants to return government money as soon as possible.

Some banks, unhappy with government's executive compensation restrictions, are seeking to return the money.

Criticized for failing to lend to consumers and businesses, banks that received government aid argue they are lending. Dimon reaffirmed banks are lending due to the government's capital injections.

He also said banks should try "not to overreact" to the restrictions the government is placing on banks receiving federal funds.

(Reporting by Karey Wutkowski and John Poirier; Editing by Matthew Lewis and Andre Grenon)