The TARGET2 System: Solutions from a Dead End

Dirk Meyer ()
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Dirk Meyer: Helmut-Schmidt-Universität

Chapter Chapter 14 in European Union and Monetary Union in Permanent Crisis I, 2022, pp 279-301 from Springer

Abstract: Abstract TARGET2 is a network of national central banks (NCBs) of the euro area for a single payment system as an essential part of a capital market union. In a multilateral clearing process, all intra-day bilateral liabilities and receivables are brought together and the resulting balances are transferred to the ECB at the end of a business day. This creates corresponding liabilities/receivables of these NCBs against the ECB, which testify to significant structural imbalances. The surplus countries hold unsecured, virtually valueless TARGET claims and are at high risk of blackmail in the event of a crisis. Different ways out of this dilemma are being developed.

Date: 2022
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DOI: 10.1007/978-3-658-38643-6_14

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