lv

Today, the Council of Latvijas Banka approved amendments to the "Procedure for Participation in TARGET2-Latvija", thereby enhancing the cybersecurity and readiness for crisis situations of this interbank euro payment system.

Latvijas Banka organises and maintains the payment system infrastructure in Latvia, including two fully automated payment systems helping to ensure interbank settlements in euro. TARGET2-Latvija is an interbank euro payment system, a component of the Trans-European Automated Real-time Gross Settlement Express Transfer System TARGET2. The other system is the EKS, the electronic clearing system of Latvijas Banka, used for the processing of retail payments and also providing the innovative instant payments infrastructure.

The amendments approved by the Council of Latvijas Banka today were introduced to implement the guideline of the European Central Bank on improvement of TARGET2, the Trans-European Automated Real-time Gross settlement Express Transfer system, of 4 October 2019.

The amendments will enhance the cybersecurity of TARGET2-Latvija by stipulating that the system participants have to comply with the TARGET2 self-certification requirements and adhere to the TARGET2 network service provider's endpoint security requirements. Also, several measures have been introduced to improve the operation of TARGET2-Latvija and actions of its participants with respect to payment execution in contingency situations, e.g. there is an opportunity for participants themselves to submit payment orders for contingency processing in TARGET2 as a contingency solution: the latter will replace the current Contingency Module. The regulation for informing Latvijas Banka on crisis prevention and management measures by TARGET2-Latvija participants has also been improved.

The amendments will take effect on 17 November 2019.

For more detailed information on the operation of interbank payment systems maintained by Latvijas Banka, see https://www.bank.lv/statistika/dati-statistika/maksajumu-sist-statistika. Currently, 17 credit institutions, one investment firm, the Treasury and Latvijas Banka are the participants of TARGET2-Latvija. TARGET2-Latvija also ensured the final settlement in euro on the participants' settlement accounts opened in TARGET2-Latvija for the EKS and the payment card processing system of Worldline Latvia Ltd.

TARGET2-Latvija processed 366.0 thousand payments totalling 144.7 billion euro in the first nine months of 2019 , i.e. on average 1.9 thousand payments totalling 757.8 million euro per day.

About Latvijas Banka

Latvijas Banka, acting in the public and economic interest, carries out several tasks significant for each and every inhabitant, financial markets and the public at large:

– participates in the formulation and implementation of the euro area's monetary policy;
– issues cash in Latvia and participates in ensuring the cash circulation process in the euro area;
– discharges the function of the central national currency authentication centre;
– maintains the interbank payment systems' infrastructure and promotes their smooth operation;
– manages the foreign reserves and other financial investments;
– acts as the financial agent of Latvia's government and provides financial services to other market participants;
– compiles and publishes financial, monetary and balance of payments statistics;
– maintains and develops the Credit Register;
– acts as an advisor to the Parliament and Cabinet of Ministers of the Republic of Latvia on monetary policy issues and other issues related to Latvijas Banka's operation.

Latvijas Banka promotes analysis and research of macroeconomic and financial issues, thereby laying a secure foundation for professional activities in these areas. The role of the leading industry expert helps Latvijas Banka raise public awareness of the development of the economy and the monetary system, the current situation and the economic policy being pursued. Latvijas Banka takes an active part in educating the general public on various economic topics.

Latvijas Banka organises and maintains the payment infrastructure in Latvia. TARGET2-Latvija is an interbank euro payment system, a component of the Trans-European Automated Real-time Gross Settlement Express Transfer System TARGET2. The Electronic Clearing System of Latvijas Banka (EKS) is used for handling retail payments.

As a further step in the development of the payment infrastructure, an instant payment service was introduced in the EKS at the end of August 2017, providing a significant stimulus for development of innovative payment instruments in Latvia.

 

Latvijas Banka also offers an additional service for development of innovative payments, i.e. the Proxy Registry "Instant Links". The Registry users – credit institutions and payment service providers – may offer their customers an option to make payments by using the mobile phone number of the payee only. AS Citadele banka has been the first to offer this option, and other banks in Latvia and even in Estonia are also expected to start using the Registry in the near term. Thus, instant interbank payments between accounts at different credit institutions by means of a mobile phone number will be available to a wide range of customers across the Baltic States.