Central Bank Transfers and Clearing


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Target2 Payment System

TARGET2 is a payment system that enables EU banks to transfer money between each other in real time. This is known as real-time gross settlement (RTGS).

To understand what Target2 is please review the video, for the manual and glossary, click on the link. 

Target 2 is a payment system operated by the Eurosystem, which is the collective of the central banks of the European Union countries that have adopted the euro as their currency. The system facilitates the settlement of cross-border payments within the euro area, ensuring that such payments are made in a timely and efficient manner.

Target 2 is an important part of the infrastructure that supports the functioning of the euro area as a single market. It enables businesses, consumers, and financial institutions to make payments to one another across national borders within the euro area with minimal delays or fees. This helps to promote trade, investment, and economic activity within the region.

In addition to its role in facilitating cross-border payments, Target 2 also plays a crucial role in maintaining financial stability within the euro area. It helps to ensure that banks have access to the liquidity they need to meet their payment obligations, even in times of stress.

Overall, Target 2 is a vital component of the financial infrastructure of the euro area, enabling the smooth and efficient settlement of cross-border payments and supporting the stability of the region's financial system.

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Target2-Securities

When investors buy and sell securities the security and payment need to change hands – a process called securities settlement. TARGET2-Securities, or T2S, is a safe platform where the exchange can happen simultaneously, i.e. where delivery versus payment is possible.

To understand how T2S works, please, see the video, for the manual here

Target 2 Securities (T2S) is a platform for the settlement of domestic and cross-border securities transactions in the European Union. It was developed by the Eurosystem, which is the collective of the central banks of the EU countries that have adopted the euro as their currency.

T2S was created to improve the efficiency and cost-effectiveness of securities settlement in the EU by providing a single platform for the settlement of all types of securities, including government bonds, corporate bonds, and equities. It aims to reduce the number of intermediaries involved in the settlement process, which can help to lower costs and reduce the risk of errors or delays.

T2S operates on a "delivery versus payment" (DvP) basis, which means that securities are delivered to the buyer only after payment has been received from the seller. This helps to ensure that securities are transferred safely and securely, reducing the risk of fraud or errors.

In addition to its core settlement function, T2S also offers a range of other services, including asset servicing, safekeeping, and collateral management. These services are designed to help market participants manage their securities portfolio more efficiently and effectively.

Overall, T2S is an important part of the infrastructure that supports the functioning of the European securities market. It helps to ensure that securities transactions are settled quickly, safely, and cost-effectively, which helps to promote confidence and stability in the market.

RTGS Systems

Real-time gross settlement (RTGS) is a type of electronic payment system that allows for the transfer of large sums of money between banks in real-time. RTGS is a high-value system that is typically used for large-value transactions, such as the transfer of funds between banks or the settlement of government securities.

One of the key benefits of RTGS is the speed at which it can process transactions. Because the system operates in real-time, funds are transferred almost immediately, allowing for a rapid settlement of transactions. This is in contrast to other types of payment systems, such as batch processing systems, which can take longer to settle transactions.

Another benefit of RTGS is its ability to handle high-value transactions. Because the system is designed to handle large sums of money, it is often used for the settlement of government securities and other high-value transactions. This makes it an important tool for maintaining the stability and efficiency of financial markets.

RTGS systems are operated by central banks or other financial institutions and are typically only available to financial institutions or other large organizations. In order to use an RTGS system, a financial institution must have an account with the central bank or other operating institution.

RTGS is the continuous process of settling payments on an individual order basis without netting debits with credits across the books of a central bank. Once completed, real-time gross settlement payments are final and irrevocable. In most countries, the systems are managed and run by their central banks.


Overall, RTGS is a fast and efficient way to transfer large sums of money between banks and other financial institutions. Its real-time processing and ability to handle high-value transactions make it an important tool for maintaining the stability and efficiency of financial markets

Other real-time gross settlement (RTGS) Systems like Fedwire, Sorbnet2, etc.:

RTGS systems:

Angola | SPTR (Portuguese: Sistema de pagamentos em tempo real; Real-time Payment System)
Argentina | MEP (Spanish: Medio electrónico de pagos; Electronic Means of Payment)
Azerbaijan | AZIPS (Azerbaijan Interbank Payment System)
Australia | RITS (Reserve Bank Information and Transfer System)
Bahrain | RTGS[10] (Real Time Gross Settlement System)
Bangladesh | RTGS (Bangladesh Bank Payment Service Division)
Barbados | Central Bank Real Time Gross Settlement System (CBRTGS)
Bosnia and Herzegovina | RTGS
Belarus | BISS (Belarus Interbank Settlement System)
Bulgaria | RINGS (Real-time Interbank Gross Settlement)
Brazil | STR (Portuguese: Sistema de Transferência de Reservas; Reserves Transfer System)
Canada | The Canadian Large Value Transfer System  does not settle in gross, nor does in settle in real-time: it nets payments against each other for later settlement

China | China National Advanced Payment System (CNAPS) (also called Super Online Banking System)
Chile | LBTR/CAS (Spanish: Liquidación Bruta en Tiempo Real; Real-time Gross Settlement)
Croatia | HSVP (Croatian: Hrvatski sustav velikih plaćanja; Croatian Large Payment System)
Czech Republic | CERTIS (Czech Express Real Time Interbank Gross Settlement System)
Denmark | KRONOS
Dominican Republic | LBTR (Spanish: Liquidación Bruta en Tiempo Real; Gross Settlement in Real Time)
Egypt | RTGS
Eurozone | TARGET2
Fiji | FIJICLEAR
Hong Kong | Clearing House Automated Transfer System (CHATS)
Hungary | VIBER (Hungarian: Valós Idejű Bruttó Elszámolási Rendszer; Real-time Gross Settlement System)
Georgia | GPSS (Georgian Payment and Securities System)
India | RTGS
Indonesia | Sistem Bank Indonesia Real Time Gross Settlement (BI-RTGS)
Iran | SATNA (سامانه تسویه ناخالص آنی, Real-Time Gross Settlement System)
Iraq | RTGS (Real Time Gross Settlement System)
Israel | Zahav (Hebrew: זה"ב זיכויים והעברות בזמן אמת; Zahav Real-time Credits and Transfers)
Japan | BOJ-NET (Bank of Japan Financial Network System)
Jordan | RTGS-J
Kenya | Kenya Electronic Payment and Settlement System (KEPSS)
Korea | BOK-WIRE+ (The Bank of Korea Financial Wire Network, 한은금융망)
Kuwait | KASSIP (Kuwait's Automated Settlement System for Inter-Participant Payments)
Lebanon | BDL-RTGS (Banque Du Liban – Real Time Gross Settlement)
Macedonia | MIPS (Macedonian Interbank Payment System)
Macao | RTGS
Malawi | MITASS (Malawi Interbank Settlement System)
Malaysia | RENTAS (Real Time Electronic Transfer of Funds and Securities)
Mauritius | Mauritius Automated Clearing and Settlement System (MACSS)
Mexico | SPEI (Spanish: Sistema de Pagos Electrónicos Interbancarios; Interbank Electronic Payment System)
Morocco | SRBM (Système de règlement brut du Maroc; Moroccan Gross Settlement System)
Namibia | NISS (Namibia Interbank Settlement System)
New Zealand | ESAS (Exchange Settlement Account System)
Nigeria | CIFTS (CBN Inter-Bank Funds Transfer System)
Pakistan | RTGS (Real Time Gross Settlement System)
Paraguay | LBTR (Spanish: Liquidación Bruta en Tiempo Real; Gross Settlement in Real Time)
Peru | LBTR (Spanish: Liquidación Bruta en Tiempo Real; Gross Settlement in Real Time)
Philippines | PhilPaSS
Poland | SORBNET and SORBNET2
Qatar | Qatar Payment System (QPS)
Russia | BESP System (Banking Electronic Speed Payment System)
Romania | ReGIS
Saudi Arabia | Saudi Arabian Riyal Interbank Express (SARIE)
Singapore | MEPS+ (MAS Electronic Payment System Plus)
South Africa | SAMOS (The South African Multiple Option Settlement)
Sri Lanka | LankaSettle (RTGS/SSSS)
Sweden | RIX (Swedish: Riksbankens system för överföring av kontoförda pengar)
Switzerland | SIC (Swiss Interbank Clearing)
Taiwan | CIFS (CBC Interbank Funds Transfer System)
Tanzania | Tanzania Interbank Settlement (TIS)
Thailand | BAHTNET (Bank of Thailand Automated High Value Transfer Network)
Turkey | EFT (Electronic Fund Transfer)
Ukraine | SEP (System of Electronic Payments of the National Bank of Ukraine)
United Kingdom | CHAPS (Clearing House Automated Payment System)
United States | Fedwire
Uganda | Uganda National Interbank Settlement (UNIS)
Zambia | Zambian Interbank Payment and Settlement System (ZIPSS)
Zimbabwe | Zimbabwe Electronic Transfer and Settlement System (ZETSS)
UAE | UAE Funds Transfer System (UAEFTS)

CHIPS 

CHIPS from The Clearing House is the largest private sector USD clearing system in the world, clearing and settling $1.8 trillion in domestic and international payments per day.

CHIPS provides fast and final payments and the most efficient liquidity savings mechanism available today. Its patented algorithm matches and nets payments resulting in an extremely efficient clearing process.

This large value payment system has approximately 50 direct participants and is the private-sector counterpart to Fedwire.