TARGET2-LIETUVOS BANKAS
TARGET2-LIETUVOS BANKAS is a real-time system for settlements in euro. It is a part of the Eurosystem’s payment system TARGET2, the so-called component system of TARGET2. The system was launched on 19 November 2007.
In a legal sense, TARGET2 is composed of many component systems, however, technologically it operates through a single shared platform (SSP). The SSP is operated on behalf of the Eurosystem by 3 central banks: Deutsche Bundesbank, Banque de France and Banca d’Italia. All TARGET2 component systems have the same service level.
The Bank of Lithuania acquired a right to participate in the system TARGET2 with a separate component system, when it signed a special agreement with the central banks of the Eurosystem. The Bank of Lithuania registers, administers and consults TARGET2-LIETUVOS BANKAS participants and provides assistance in case of problems. It also coordinates the preparation of these participants for the annual updates of TARGET2, performs the central bank’s actions necessary for performing tests and coordinates the activity of the TARGET2 National User Group.
The decision of the Bank of Lithuania to have its own TARGET2 component system is related to strategic and practical importance. Participation in this system is one of the conditions for euro adoption. In addition, after becoming a part of the Eurosystem, the Bank of Lithuania will transfer its main operations to TARGET2-LIETUVOS BANKAS and the current system LITAS-RLS will be suspended.
Market participants actively use the services of TARGET2-LIETUVOS BANKAS. In the beginning of 2010, the value of operations processed by the system per day reached the level of the value of operations processed by the respective system using the national currency (LITAS-RLS). In addition, the possibility to make settlements in euro became widely used by securities market participants. TARGET2-LIETUVOS BANKAS has been increasingly often used for settlements of over-the-counter securities transactions since 2009. In November 2010, it also became the main place for the settlement of stock transactions concluded in NASDAQ OMX Vilnius stock exchange. The customers that use the service of express credit transfers in euro have also benefited from TARGET2-LIETUVOS BANKAS. Some credit institutions participating in the system extended the cut-off times of such payments.
Comprehensive information about the operation of TARGET2-LIETUVOS BANKAS, requirements for participants, their rights and obligations, system schedule and business continuity measures is provided in the system’s Rules of Operation. The updated list of participants of TARGET2-LIETUVOS BANKAS is provided in the Official List of Systems, while all TARGET2 participants are indicated in the list prepared by the Eurosystem[1], which is updated quarterly.
[1] The list of TARGET2 participants includes only direct and indirect participants. The participants that have another status (holders of an addressable BIC and participants using multi-address access) are not included. The list includes the participant’s name, BIC code and status. The data of the first day of a respective quarter are provided. They are not updated until the first day of the next quarter. The list is attributable to general information.
