TARGET2 and TARGET2 Securities
Funds transfers between banks in the EU are effected through De Nederlandsche Bank (DNB) and the other central banks using a dedicated payment system: TARGET2. There is a similar dedicated platform for securities transactions: TARGET2 Securities.
TARGET2: euro payments in Europe
TARGET stands for Trans-European Automated Real-Time Gross Settlement Express Transfer. The '2' means 'second generation'. Over 1,700 banks use TARGET2 to carry out 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. Most of these 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 a payment system for banks in the EU and is managed by the Eurosystem. TARGET2 enables the free cross-border transfer of funds, and it supports the execution of monetary policy. The central banks have an operational role: they are responsible for opening accounts and monitoring transactions. Funds 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 European Central Bank (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.
We have legal documentation, presentations and registration forms available for participants (SWIFT and online) Please contact the TARGET2 National Help Desk if you have any questions. E-mail to email@example.com or call +31 20 524 3564.
More information can also be found on.
TARGET2 Securities: securities transactions in Europe
TARGET2 Securities (T2S) is a platform for the settlement of securities transactions. DNB and the other central banks provide this platform, together with 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 very frequently by retail banks, the EU central banks and the CSDs. Together, they settle more than 500,000 transactions daily (February 2017).
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.
Since October 2018, the Danish central bank has used T2S to settle delivery-versus-payment transactions in 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 about T2S
We have legal documentation, presentations and registration forms available for participants. More information can also be found on the ECB website.
T2-T2S consolidation. What is it?
The Eurosystem has launched a project to consolidate TARGET2 and T2S, in terms of both technical and functional aspects. The objective is to meet changing market demands by replacing TARGET2 with a new real-time gross settlement (RTGS) system called T2 and optimising liquidity management across all TARGET services. DNB is the central bank responsible for opening and maintaining accounts in the TARGET-NL part of the TARGET2 system.
> Read more about the T2-T2S consolidation project
Voorwaarden voor HAM-rekeninghouders – November 2019 (PDF, 473,0 kB)
FSB Continuity Of Access TARGET2 NL Reply
FSB Continuity of Access TARGET2 General reply
Voorwaarden TARGET2-NL – November 2019 (PDF, 1,6 MB)
Conditions CB-NL - November 2015 (PDF, 163,6 kB)
TARGET2 Compensation Scheme - Claim Form (PDF, 77,4 kB)