TARGET2 and TARGET2 Securities

Fund transfers between banks in the EU are effected through DNB and the other central banks using a dedicated payment system: TARGET2. There is a similar dedicated platform for securities transactions: TARGET2 Securities.
DNB en de andere centrale banken van Europa gebruiken TARGET2 voor hun onderlinge eurobetalingen.

TARGET2: euro payments in Europe

TARGET2 stands for: Trans-European Automated Real-Time Gross Settlement Express Transfer. The '2' means 'second generation'. Over 1,700 banks use TARGET2 to effect euro transactions, for themselves or on behalf of their customers. On average, 350,000 transactions are processed every day, with a total value of EUR 1.8 trillion. These transactions involve large sums: the average transaction value is EUR 5.3 million. More than two thirds of these transactions have a value of less than EUR 50,000 and 12% have a value over EUR 1 million.

TARGET2: the role of DNB

TARGET2 is an interbank payment system for banks in the EU. It is managed by the Eurosystem. TARGET2 enables free cross-border transfer of funds and supports the execution of monetary policy. The central banks have an operational role: they are responsible for managing the accounts and monitoring transactions. Interbank fund transfers between retail banks are effected through their central banks. These transfers happen very quickly: 99.94% of transactions are executed in under five minutes.

TARGET2: central banks' balances

Central banks can have outstanding balances with other central banks. Every national central bank holds a certain balance in TARGET2 vis-à-vis the ECB as a result of cross-border payments. The balance is positive for creditors and negative for debtors. DNB and the central banks of Germany, Luxembourg and Finland are accumulating receivables, while central banks of other countries are accumulating more liabilities. DNB has accumulated receivables totalling over EUR 100 billion (May 2017). The ECB has data on DNB's and the other central banks' balance positions.

More information on TARGET2

TARGET2 is available every day of the week except weekends and the following days: New Year's Day, Good Friday, Easter Monday, Labour Day, Christmas Day and Boxing Day.

DNB has legal documentation, presentations and registration forms available for participants (SWIFT and Internet). Please contact the TARGET2 National Help Desk if you have any questions. Email:target2@dnb.nlof call +31 20 524 35 64.

You can also find information on the ECB's website. The TARGET2 video offers a look behind the scenes.

TARGET2 Securities: securities transactions in Europe

TARGET2 Securities (T2S) is a platform for the settlement of securities transactions. The platform is managed by DNB and the other central banks, and the central securities depositories (CSDs). T2S is used to process domestic and cross-border delivery-versus-payment transactions in central bank money. T2S is one of the largest infrastructure projects of the Eurosystem. Its motto is "settling without borders".  The platform is used extensively: more than 500,000 transactions are processed every day (February 2017). The platform is used by retail banks, the EU central banks and the CSDs.

TARGET2 Securities: participants

The platform for the settlement of securities transactions in euro is used by

  • almost all euro area countries
  • four non-euro countries: Denmark, Hungary, Romania and Switzerland

Effective from October 2018, the Danish central bank will make the Danish krone available on T2S. It will then be possible to settle delivery-versus-payment transactions involving the Danish currency in central bank money. As more and more markets and currencies join the platform, the benefits for its users will increase. T2S perfectly ties in with the Eurosystem's ambition to create an integrated European capital market.

More information on TARGET2 Securities

DNB has legal documentation, presentations and registration forms available for participants. You can also find information on the ECB's website.

Watch the video and learn more about TARGET2 Securities.