TARGET2systemet

TARGET2 (Trans-European Automated Real-time Gross Settlement Express Transfer System 2) is a real-time gross settlement (RTGS) system primarily used for the settlement of euro-denominated payments within the European Union. Operated by the Eurosystem, which consists of the European Central Bank (ECB) and the national central banks (NCBs) of EU member states, TARGET2 facilitates the secure and efficient transfer of large-value payments across participating countries.

Launched in November 2007, TARGET2 replaced the earlier TARGET system, enhancing the speed, reliability, and integration of euro payment processing. It supports immediate, high-value transactions, including interbank transfers, government payments, and settlement of financial market transactions. Transactions processed through TARGET2 are settled individually and instantly, ensuring that the transfer of funds occurs in real time without the need for central clearing.

TARGET2 operates on a centralized platform that connects the NCBs and major financial institutions across the euro area, providing a harmonized infrastructure for payment operations. This infrastructure offers high availability, security, and continuous operation, accommodating the needs of EU financial markets and institutions.

The system is integral to the stability and functioning of the euro financial system, enabling efficient monetary policy implementation, banking operations, and financial stability measures. As part of the Eurosystem’s broader payment infrastructure, TARGET2 aligns with the European Central Bank’s goal of fostering a deeply integrated and resilient monetary union.

TARGET2 continuously evolves to meet the changing demands of the financial sector, including migration plans towards a new payment infrastructure called T2-TI, aimed at improving operational resilience and efficiency.

Overall, TARGET2 plays a critical role in supporting the seamless flow of euro payments across Europe, underpinning the stability and functioning of the European financial system.