TARGET is the real-time gross settlement (RTGS) system for the euro, where processing and settlement takes place in real time (continuously) and where each transfer is settled individually (gross settlement)
TARGET is the real-time gross settlement (RTGS) system for the euro, where processing and settlement takes place in real time (continuously) and where each transfer is settled individually (gross settlement). Transactions are settled using central bank money and with immediate finality.
TARGET-NBP is a Polish component of TARGET system. TARGET is the second generation of TARGET system (Trans-European Automated Real-time Gross settlement Express Transfer system).
In November 2007, after five years of planning, development and testing TARGET system was replaced by the TARGET2 system. As soon as the new system was launched the participants of the TARGET system started to migrate to the new system. Central banks migrated on three dates:
- 19 November 2007 – Austria, Belgium, Cyprus, Germany, Latvia, Lithuania, Luxembourg, Malta, and Slovenia,
- 18 February 2008 – Finland, France, Ireland, the Netherlands, Portugal and Spain,
- 19 May 2008 – Denmark, Estonia, Greece, Italy and Poland.
TARGET is legally structured as a multiplicity of RTGS systems. There are twentyfour TARGET components, among them TARGET-NBP system. In terms of technical and business features, TARGET is a centralized system developed on a one single platform (the Single Shared Platform (SSP)) by three central banks: Banque de France, Deutsche Bundesbank and Banca d’Italia (3CBs).
Each central bank, participated in TARGET system, is obliged to held its banks account on SSP and service of settlement all payments orders related to the national payment area.
In TARGET-NBP there are:
- 19 direct participants:
- Narodowy Bank Polski,
- 15 commercial banks,
- 3 ancillary systems (AS):
- Krajowa Izba Rozliczeniowa S.A. – KIR S.A. (national clearing house) – since 8 June 2009,
- Krajowy Depozyt Papierów Wartościowych S.A. – KDPW S.A. (central securities depository) – since 21 November 2011,
- KDPW_CCP – since 29 June 2015.
TARGET2-NBP in 2022:
- processed 2,4 million payments with a total value of € 2,8 trillion,
- the average value of a TARGET2-NBP transaction was € 1.2 million,
- processed a daily average of 9,329 payments, representing a daily average value of € 10.9 billion.