Latvijas Banka organises and maintains this infrastructure by approving the regulations governing its operations, analysing and forecasting the potential developments, participating in the technical development of the infrastructure to ensure maximum efficiency of the payment system. Latvijas Banka maintains two fully automated payment systems helping to ensure interbank settlements in euro.
One of the key tasks of the national central banks is to establish and maintain a secure and effective payment system. Such a payment system plays an important role in the development of the country's financial sector, ensuring non-cash settlements between credit institutions and other financial institutions. Only through an effective payment system can the national central banks also fulfil their main task of implementing the monetary policy. The two key elements of a national payment system are financial institutions and the system's infrastructure (its technical and administrative management).
On 19 November 2007, an interbank euro payment system TARGET2-Latvija, one of the 25 component systems of the Trans-European Automated Real-time Gross settlement Express Transfer system TARGET2, was launched. The processing of payments and settlements take place in real time within the system, thereby ensuring immediate settlement finality. Gross settlement used in the system means that there is a separate settlement for each transfer. By maintaining TARGET2-Latvija, Latvijas Banka is ensuring the operation of TARGET2 in conjunction with other participants of the European System of Central Banks.
The Electronic Clearing System of Latvijas Banka (EKS system) is the net settlement system of Latvijas Banka that was launched on 17 November 1998, replacing the previous, paper-based clearing system, and it is used for handling retail payments. The EKS can be regarded as an ACH (Automated Clearing House) system where payment handling is fully automated and only electronic documents are accepted and processed. The EKS currently is the largest retail payment system in Latvia ensuring fast, efficient and low-cost settlements in euro. The system started handling payments in euro in January 2008, enabling the execution of domestic retail payments in euro within one working day. As of 9 November 2010, the EKS system is SEPA compliant. This means that its participants are able to make and receive euro payments throughout the SEPA area: in EU Member States, Iceland, Liechtenstein, Norway, Switzerland and Monaco.