Dudley: " If banks want to expand credit and that drives up the demand for reserves, the Fed automatically meets that demand in its conduct of monetary policy. In terms of the ability to expand credit rapidly, it makes no difference whether the banks have lots of excess reserves or not."
It may seem obvious, but as Ramanan notes, not many central bankers are saying this publicly.
Read the whole quote at Ramanan's.
Read it at The Case for Concerted Action
William Dudley On Bank Lending