TOKYO, Nov 25 (Reuters) - European Central Bank Governing Council member Christian Noyer said on Monday said that European financial markets are stabilising and interest rates are returning to normal levels as the euro zone economy shows growing signs of picking up.

Noyer, who also heads the Bank of France, said efforts to create a unified banking system in Europe will bolster confidence in banks and improve the transmission of monetary policy.

With euro zone inflation well below target, the ECB cut interest rates to a record low earlier this month and has made clear it is open to the possibility of taking other steps to bring inflation closer to its desired level.