The emergence of the European sovereign debt crisis and its effects have been accompanied by the growth of TARGET2 balances, i.e. of the debit and credit positions of the euro area’s central banks in the TARGET2 payment system. The aim of this focus is to explain the role of the central banks’ positions in TARGET2 and the reasons for their increase over the recent period.
This article outlines the main features of TARGET2 before looking at what the system's introduction means for liquidity management, the organisation of financial institutions and, more generally, European financial integration.
This article gives an overview of the decision-support system built into TARGET2. The system provides participating central banks with shared services and tools to make them more effective in their dual role as system overseer and operational point of contact for “their” TARGET2 participants. The Banque de France was entrusted with the design, development and operational management of the system.
Updated on: 12/13/2016 15:37