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TARGET2


The new payment system for predominately large value euro inter-bank payments in central bank money, TARGET2 (Trans-European Automated Real-time Gross settlement Express Transfer system), was successfully launched on 19th November 2007. Within the Eurosystem TARGET2 will replace the decentralised technical platforms operating under TARGET. The Central Bank of Malta did not operate a TARGET platform, but migrated directly from MaRIS to TARGET2 on adoption of the euro.

TARGET2 technically operates around a single shared platform (SSP), and is operated by three Eurosystem central banks, namely, the Banca d’Italia, the Banque de France and the Deutsche Bundesbank, on behalf of the Eurosystem. Malta forms part of the first group of eight countries that have migrated to TARGET2. Other EU countries which operate in euro became TARGET2 members in two further groups during 2008. In Malta, the services of TARGET2 are provided by the component system TARGET2 Malta (T2MT).

TARGET2’s main benefits include:

(i) the higher cost efficiency from implementing a centralised system which will enable a substantial reduction in operational and maintenance costs;
(ii) flexibility of the system which is easy to adapt in future;
(iii) the generation of economies of scale for its users, which will give sizeable cost reductions;
(iv) the level playing field among users;
(v) wide flexible liquidity management services in order to cope with users’ demands; and
(vi) high level of business continuity.

Link to ECB page on TARGET2

CBM Press Release – Launch of TARGET2 19th November 2007



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