2005年-ECB欧洲央行_Information_guide_for_credit_institutions_using_TARGET_148页_1mb

Summary of the INFORMATION GUIDE FOR CREDIT INSTITUTIONS USING TARGET (June 2005)

Core Content

This document provides a comprehensive guide for credit institutions using the TARGET (Trans-European Automated Real-time Gross Settlement Express Transfer) system. It outlines the structure, operation, legal framework, and practical considerations for using TARGET, including incident management, compensation schemes, and frequently asked questions.

Main Points

1. TARGET Overview

• Definition: TARGET is a real-time gross settlement (RTGS) system designed to support the Eurosystem's monetary policy and ensure smooth payment operations across the euro area.
• Function: It facilitates cross-border payments in euro with the same efficiency as domestic payments.
• Scope: Only credit transfers in euro are processed through TARGET.
• Purpose: To enable low-cost, high-security, and fast processing of large-value payments such as foreign exchange and money market transactions.

2. Legal Framework

• Based on:

  • The TARGET Guideline (ECB's directive to NCBs).
  • The TARGET Agreement (allowing non-euro states to connect to TARGET).
  • National RTGS rules (each NCB's domestic regulations).

• These rules are harmonized to ensure consistency across the Eurosystem.

3. Principles of TARGET

• Market Principle: TARGET is not mandatory for interbank or commercial payments, but all large-value net settlement systems in euro must settle through TARGET to mitigate systemic risk.
• Irrevocability: Payment orders are irrevocable once the sending institution's RTGS account is debited.
• Finality: Payments are final once credited to the receiving institution's account, eliminating settlement risk.
• Access Criteria: Only supervised credit institutions in the EEA can be participants. Exceptions include government treasury departments, public sector bodies, and certain investment firms.

Key Information

4. Structure of TARGET

• Decentralized System: Composed of national RTGS systems and the ECB Payment Mechanism (EPM), interconnected via the Interlinking system.
• Interlinking: Uses SWIFTNet FIN network as the technical platform. Messages are mapped to either MT103 (for customer payments) or MT202 (for interbank payments) formats.
• National RTGS Systems:
  • Each country has its own RTGS system (e.g., ELLIPS in Belgium, BI-REL in Italy, etc.).
  • The National Bank of Poland (NBP) uses SORBNETeuro, which is linked to BI-REL in Italy.

5. TARGET Payments

• Types of Payments:
  • Customer Payments: Sent in MT103 format, processed from 07:00 to 17:00.
  • Interbank Payments: Sent in MT202 format, processed during the same window.
• Validation and Return:
  • Payments can be validated and returned if the receiving RTGS system participant cannot apply the funds.
  • The return key is used to identify return payments.
• Remote Access Banks:
  • Banks that are not direct participants can still send and receive payments through a participant or NCB.

6. TARGET Day and Procedures

• Operating Hours: 07:00 to 17:00 for customer and interbank payments.
• End-of-Day Procedures:
  • Cut-off times are set for both customer and interbank payments.
  • Finalization of payment account balances occurs at the end of the day.
  • Abnormal Circumstances: Procedures for delayed closing are outlined.

7. Incident Management

• Redundancy and Business Continuity:
  • Redundancy is a key method to ensure business continuity.
  • Business continuity is the preferred option during disruptions.
• Contingency Processing:
  • The system must maintain core payment settlement functions.
  • Preconditions: Streamlined decision-making, contingency testing, and adherence to national RTGS rules.
• Operational Responsibilities:
  • NCBs and the ECB have defined roles in incident management.
  • Clear communication with banks and settlement systems is essential.

8. Compensation Scheme

• Purpose: To provide compensation for losses due to payment failures.
• Scope: Applies to all participants in the TARGET system.
• Process:
  • Application: Must be made within specified timeframes.
  • Receiving Compensation: Based on the nature and extent of the loss.
• Example: Provided in the document to illustrate the compensation process.

9. Frequently Asked Questions

• Operating Times: Targeted for working days, with specific cut-off times.
• Volume and Minimum Amount: No daily volume limit, and no set minimum payment amount.
• SWIFT Keys: Required for sending payments to other banks.
• Use of "//RT": Not necessary for TARGET payments.
• Liquidity and Fees: Covered in the document, with information on how to manage liquidity and the associated fees.

10. Business Practices

• European Banking Federation (EBF):
  • Provides guidelines on liquidity management and interbank compensation.
• CLS Payments in Euro:
  • Specific recommendations for cross-border payments related to the Continuous Linked Settlement (CLS) system.
• Application of Recommendations: Covered in the document, with emphasis on harmonization and contingency procedures.

11. Documentation and Resources

• ECB Publications: Include "TARGET-basic texts" and "TARGET - general information".
• Additional Resources:
  • EBF website (www.fbe.be)
  • BIS website (www.bis.org) for payment and settlement system documents.

Annexes and Supporting Information

• Annex 9.1: Lists reactions where the NCB/ECB BIC appears in the first credit field.
• Annex 9.4: Provides examples of customer and interbank payments.
• Annex 9.8: Details contingency procedures, including:
  • Interlinking Contingency
  • Contingency using Correspondent Accounts (CoCA)
  • Scenarios like failure of the link between Poland and Italy.
• Annex 9.10: Explains the framework and recommendations for CLS-related payments.
• Annex 9.11: Lists settlement times for ancillary systems.

Glossary

• A glossary of terms is included to aid understanding of the system's jargon and acronyms.

Contact Information

• ECB Address: Kaiserstrasse 29, 60311 Frankfurt am Main, Germany
• Website: http://www.ecb.int
• Telephone: +49 69 13440
• Fax: +49 69 13446000
• Telex: 411 144 ecb d

Additional Notes

• The document is intended to provide current information on the TARGET system.
• For updates on the TARGET2 project, refer to the ECB's latest publications.
• The use of BIC codes is crucial for identifying banks in TARGET.
• SWIFT BIC Directory is the reference for published BICs.
• Unpublished BICs are not valid for use in TARGET.
• The TARGET Directory lists all addressable institutions, with optional listing based on the institution's request.