The update directly addresses TARGET system operational framework, settlement procedures, and participation rules for a core RTGS clearing and settlement infrastructure.
The framework's provisions on bridge institutions and third-party purchaser access during resolution planning have secondary relevance to payment institution participation and oversight.
Specialism
The update addresses operational continuity and system resilience of TARGET payment infrastructure during resolution scenarios, which aligns with operational resilience frameworks for critical payment systems.
Low confidence — requires human review. The update involves supervisory guidance on payment system participation and resolution planning, but the primary focus is system resilience rather than ongoing supervisory oversight.
2026-04-09 09:03:34·csoo@vixio.com
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TITLE: Italy's Bank of Italy Updates TARGET Payment System Framework for Resolution Planning
BODY:
On April 2026, Banca d'Italia (Bank of Italy) published an updated questionnaire response addressing the Financial Stability Board's (FSB) Guidance on Continuity of Access to Financial Market Infrastructures (FMIs) for firms in resolution. The update reflects amendments to Guideline (EU) 2022/912 of the European Central Bank regarding a new generation TARGET system.
TARGET-Banca d'Italia operates as Italy's component of the Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET), a multilateral real-time gross settlement (RTGS) system overseen by the European Central Bank (ECB). The system provides participating credit institutions and eligible entities with Main Cash Accounts (MCAs) for liquidity management and Dedicated Cash Accounts (DCAs) for payment settlement, including services for securities settlement through TARGET2-Securities (T2S) and instant payments through TARGET Instant Payment Settlement (TIPS).
The framework clarifies that crisis prevention or crisis management measures under the Banking Recovery and Resolution Directive (BRRD) do not automatically constitute insolvency proceedings triggering mandatory termination. However, Banca d'Italia retains discretionary authority to suspend or terminate participation where events threaten TARGET's stability, soundness, or safety. Termination decisions follow case-by-case assessments considering materiality and proportionality principles. The updated guidance specifies that bridge institutions and third-party purchasers may continue accessing TARGET provided they meet standard participation criteria, though no expedited onboarding procedures are formally defined. Direct participation eligibility extends to credit institutions, national central banks, and discretionary categories including investment firms and non-bank payment service providers established in the European Union or European Economic Area.
The questionnaire responses remain available to participants and resolution authorities to support resolution planning. Banca d'Italia indicated no material changes to termination procedures or additional membership requirements for participants in resolution since the previous 2020 version.