Should we be concerned about TARGET balances?

Podrobná analýza 15-11-2017

This document was provided to Policy Department A at the request of the Economic and Monetary Affairs Committee. The paper describes how the Eurosystem’s processing of cross-border banking transactions via its TARGET2 payments system produces a set of assets and liability items on the balance sheets of national central banks. The factors determining the evolution of TARGET-related balances are discussed and the risks associated with these balances are addressed.