{"id":3103,"date":"2025-10-14T20:29:05","date_gmt":"2025-10-14T18:29:05","guid":{"rendered":"https:\/\/www.betaalvereniging.nl\/en\/?post_type=btv_wiki&p=3103"},"modified":"2026-02-26T12:17:01","modified_gmt":"2026-02-26T11:17:01","slug":"target2-tips","status":"publish","type":"btv_wiki","link":"https:\/\/www.betaalvereniging.nl\/en\/knowledge-base\/market-infrastructure\/target2-tips\/","title":{"rendered":"T2 (TARGET2) \/ TIPS"},"content":{"rendered":"\n\t
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T2 (TARGET2) \/ TIPS<\/h1>\n\n\t\t\t\t\t\t\t
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\n\t\t\t\t\t\tEuropean banks settle SEPA payments (euro payments) between themselves via the T2 and TIPS settlement systems at the European Central Bank (ECB).\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t
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\n\t\t\t\t\t\"\"\n\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\n\n\n\n\n\n<\/linearGradient>\n<\/defs>\n<\/svg>\n\n\t\t\t\t<\/span>\n\t\t\t<\/div>\n\t\t\t<\/div>\n<\/div>\n\t<\/div>\n\n\n\n

T2 \u2013 Heart of European payments<\/h2>\n\n\n\n

All euro payments between European banks are settled (cleared, settled, processed) via T2<\/strong> (formerly TARGET2). T2 is the ECB’s administration system in which the liquidity accounts of banks and other payment service providers at national central banks (such as DNB<\/u><\/strong> <\/path><\/svg><\/span><\/a>) are maintained. Each payment service provider holds a large amount of central bank money (\u2018liquidity\u2019) in such an account, sufficient to meet all its payment obligations to other banks for a certain period of time.<\/p>\n\n\n\n

In T2, large payments in euros between banks are recorded via a so-called Real-Time Gross Settlement<\/em> <\/strong>system (RTGS). The actual execution of these interbank payments takes place via the Eurosystem of national central banks, between the liquidity accounts of payment service providers. Each transaction is settled immediately and irrevocably in central bank money in T2.<\/p>\n\n\n\n

T2 and the liquidity accounts of payment service providers limit systemic risks and ensure a high level of reliability in euro payments.<\/p>\n\n\n\n

Read more at the ECB: <\/u>What is T2?<\/u><\/em><\/strong>(opens in new window)<\/span> <\/path><\/svg><\/span><\/a><\/p>\n\n\n\n

Key functions of T2<\/h3>\n\n\n\n
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  1. Support for monetary policy<\/strong><\/li>\n\n\n\n
  2. T2 facilitates the implementation of the ECB\u2019s monetary policy by efficiently processing payments arising from transactions by and for payment institutions.<\/li>\n\n\n\n
  3. Interbank payments<\/strong><\/li>\n\n\n\n
  4. The system processes large interbank payments and commercial transactions. Hundreds of thousands of transactions worth trillions of euros are processed every day.<\/li>\n\n\n\n
  5. Liquidity management<\/strong><\/li>\n\n\n\n
  6. The introduction of Central Liquidity Management<\/em> (CLM)<\/strong> makes it possible to centrally manage the liquidity of each bank for different types of settlement transactions. This increases efficiency and flexibility for banks.<\/li>\n\n\n\n
  7. Cross-border payments<\/strong><\/li>\n\n\n\n
  8. T2 enables the free movement of money within the eurozone and is directly accessible to more than 1,000 banks and indirectly to more than 50,000 financial institutions worldwide.<\/li>\n<\/ol>\n\n\n\n

    Technical features<\/h3>\n\n\n\n