pc
nid 91812
Apr 09, 2026
csoo@vixio.com
Italy
Bank of Italy
horizon scanning
95% of draft length
draft in Generated
Generated
2217 charsItaly's Bank of Italy Updates TARGET Payment System Framework for Resolution Planning
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.
Agent draft
Not run yet.
Published
2112 charsBank of Italy Updates Financial Stability Board Questionnaire Response on TARGET Payment System Framework for Resolution Planning
On April 8, 2026, the 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).
Some key points of note in the updated questionnaire responses include:
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.
Stresses that the Bank of Italy 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.
Specifies that bridge institutions and third-party purchasers may continue to access TARGET, provided they meet standard participation criteria. 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 Bank of Italy highlighted that the updated response has had no material changes to termination procedures or additional membership requirements for participants in resolution since the previous 2020 version.