Bank of Finland’s Huhtala on reserve management post-crisis
CentralBanking.com (CB): How has the thinking on the role of reserves changed since the start of the crisis?
Heli Huhtala (HH): There are two things. Firstly, it's clear that reserves are needed, but perhaps for different purposes and in a different magnitude than thought before. Safeguarding financial stability may require a very large amount of reserves because the banking sector is so big.
On the other hand, during the crisis we have seen that there are many different ways of attaining
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