Answered By: Bobray Bordelon
Last Updated: May 22, 2020     Views: 3

From the European Central Bank:

"TARGET is the Eurosystem’s real-time gross settlement (RTGS) system. It commenced operations on 4 January 1999 following the launch of the euro. The initial TARGET system was then built by linking together the different RTGS structures that existed at the national level. It was replaced by the Eurosystem’s centralised TARGET2 platform in November 2007. During the transition period, which lasted until May 2008, all national structures were replaced by the single platform. For simplicity, TARGET and TARGET2 are both referred to here as “TARGET”.  TARGET balances are positions on the balance sheets of all euro area countries’ NCBs and the NCBs of non-euro area EU countries that have joined TARGET on a voluntary basis. Changes in the TARGET balances of individual NCBs result from the settlement of cross-border payments executed between banks via TARGET. The ECB’s Governing Council decided in 1999 that TARGET bilateral balances between NCBs should be netted on a daily basis by novation. This means that the constellation of bilateral flows between all NCBs has been replaced with single net positions vis-à-vis the ECB only (see Article 6 of ECB Guideline 2012/27)."

The European Central Bank reports monthly balances by central bank.




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