In 2021, Latvijas Banka continued to provide the operation of TARGET2- Latvija – one of the component systems of TARGET22, which is the third largest payment system in the world.
Within the framework of enhancement of TARGET2-Latvija cyber security, Latvijas Banka coordinated the submission of statements by system participants acknowledging the compliance with TARGET2 security requirements and those of TARGET2 network service provider's end-user.
Chart 1
Volume and value of payments processed in the TARGET2-Latvija
The availability of TARGET2, including TARGET2-Latvija, accounted for 100% in 2021. TARGET2-Latvija processed on average 882 payments per day with a value of 1.1 billion euro. The total volume of payments decreased by 8.4%, while their total value rose by 2.5% year-on-year.
In 2021, Latvijas Banka together with other Eurosystem central banks continued the implementation of the TARGET2 and TARGET2-Securities consolidation project with a view to replacing TARGET2 with a new payment system in November 2022.
Latvijas Banka together with other Eurosystem central banks introduced solutions to ensure reachability of the TARGET Instant Payment Settlement (TIPS) service across Europe and offer an opportunity to European instant payment systems to improve their mutual settlements 24/7/365.
Latvijas Banka also provided payment services in euro to the institutions whose settlement accounts were opened with Latvijas Banka, but which were not direct participants of Latvijas Banka's payment system TARGET2- Latvija, i.e. the Treasury, the FCMC, Latvian, foreign and international financial institutions. In 2021, such payments executed by Latvijas Banka amounted to 2.9 billion euro.