TARGET2 - Benefits
Advantages common to TARGET and TARGET2
- TARGET2 processes large-value payments and urgent payment orders in "safe" central bank money with immediate finality, even across borders, and thus reduces the risks inherent in payment transactions.
- With approximately 1000 direct and 54,000 indirect participating banks (including branches and subsidiary institutions), an extremely large number of banks are accessible.
- TARGET2 is open for payment transactions on working days from 7.00 to 18.00 CET.
- Liquidity is widely available in TARGET2. Minimum reserve holdings are available for settlement purposes during the day and the Eurosystem provides its counterparties with unlimited intraday credit free of interest against collateral.
Additional advantages of TARGET2 over TARGET
- TARGET2 is even more efficient, secure and stable than TARGET.
- It has many liquidity management options, for instance, reservation of liquidity and liquidity pooling.
- National and cross-border payments are processed in the same way, with participants addressed directly.
- The single shared platform means harmonised services that are provided at standardised prices.
- TARGET2 now also processes interbank direct debits.
- In TARGET2, payment orders can be "pre-submitted" - that is up to five working days in advance.
- TARGET2 enables the settlement of ancillary systems (eg securities clearing systems, retail payment systems and large-value payment systems) during night-time processing.