Four European banking bodies request a delay of T2-T2S consolidation project

Wednesday 20 May 2020 14:12 CET | News

Four European banking bodies have written to the European Central Bank (ECB) requesting a one-year delay for the consolidation project of TARGET2 (T2) and TARGET2 Securities (T2S).

The project was due to be completed in November 2021, to consolidate and optimise the provision of the T2 and T2S services and to address the demand of having a facility for the provision of liquidity to existing and future Eurosystem payment and settlement services.

According to the letter, the COVID-19 crisis is creating ‘severe constraints’ on banks’ ability to progress with the consolidation project due to requests from national authorities for them to focus on their core activities to finance the economy and maintain payments system stability.

According to Regulation Asia, the delay is also being requested in response to the March 2020 decision by SWIFT to delay the migration of cross-border payments to ISO 20022 to November 2022.

The letter says the one-year lag between ISO 20022 high value euro payments migration and cross border payments ISO 20022 migration causes ‘important additional work for the banking community’, including the implementation of market practice guidelines to ensure that there is no data truncation for cross-border ‘leg-out’ payments.

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Keywords: EU Banking Bodies, banking, EU, T2, T2S, consolidation project, European Central Bank, ECB, TARGET2, TARGET2 Securities, payments , COVID-19, coronavirus, banks, SWIFT, cross-border payments, ISO 20022, data
Categories: Banking & Fintech
Countries: Europe
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Banking & Fintech