Published: 20/3/2023 Modified: 21/11/2023
TARGET (Trans-European Automated Real-time Gross settlement Express Transfer system) is a centralised system which includes payment systems in euro enabling settlements in central bank money and offering central liquidity management services, settlement of payment transactions in real time on a gross basis and services for the settlement of ancillary systems, allowing payments related to securities settlement (TARGET2-Securities-T2S) and instant payments settlement (TARGET Instant Payments Settlement-TIPS)

TARGET (Trans-European Automated Real-time Gross settlement Express Transfer system) is a system with the Single Shared Platform (SSP), jointly operated by Deutsche Bundesbank, Banca d’Italia, Banque de France and Banco de España (4CB) on behalf of the Eurosystem.

The European Central Bank is the main supervisory authority for TARGET.

The European Central Bank (ECB) and euro area national central banks operate a number of financial market infrastructures, which ensure the free flow of cash, securities and collateral across the Eurosystem. They are jointly called TARGET Services.

TARGET-HR is the component of TARGET system operated by the Croatian National Bank and determined as “the system” in accordance with Article 5, paragraph (1) of the Act on Settlement Finality in Payment and Financial Instruments Settlement Systems.

On 20 March 2023, a new consolidated T2-T2S platform was established on the level of the Eurosystem, as well as a new system called TARGET, which optimised liquidity management in both technical and functional aspects in all the TARGET Services, replacing the current TARGET2 system.

TARGET-HR replaced the national component of the TARGET2-HR system which became operational on 1 February 2016.

TARGET-HR and its T2 service is a payment system for the settlement of (national and cross-border) payment transactions in euro in real time on the RTGS (Real Time Gross Settlement) principle for interbank payments and customer payments, payments for the purpose of implementing the monetary policy of the EU, CNB’s monetary operations, payment transactions for the purpose of supplying banks with cash, payment transactions for the purpose of the execution of transactions linked to participation in the capital market, payment transactions for the purpose of the execution of final settlement of other payment systems and other payment transactions.

TARGET-HR system and its T2 service consist of the following:

ESMIG (Eurosystem Single Market Infrastructure Gateway) is a single gateway for all the participants in TARGET and their connection with the services and common components of the TARGET system.

Access to TARGET Services via ESMIG is provided by network service providers. The access is ensured via network service provider agnostic (i.e. it does not rely on network specific features), meaning that multiple network providers are allowed. All network providers have to comply with the same communication interface specification towards ESMIG.

ESMIG allows users to connect to all the TARGET Services by using: A2A (Application to Application) mode – communication between software applications via XML messages complying with the ISO 20022 standards or files; and

U2A (User to Application) mode – online screen-based activities performed by ESMIG users.

CLM (Central Liquidity Management) – the TARGET-HR service for centralised monitoring and management of liquidity in which central bank operations are performed (monetary policy operations, collection of fees from TARGET-HR participants, operations of maintaining and calculating the reserve requirement, etc.).

CLM offers a wide range of features, such as instruments for the management of liquidity and information tools used in monitoring liquidity. Holders of main cash account (MCA), opened in CLM, are responsible for their own liquidity management and for monitoring the settlement process on their main cash accounts in CLM and on dedicated cash accounts (DCA) in other TARGET-HR services.

RTGS (RealTime Gross Settlement) – the TARGET-HR service for the execution and settlement of interbank and customer payments and settlement of ancillary systems in real time. Transactions are settled on dedicated cash accounts (RTGS DCA) of participants and/or sub-accounts for settlement from ancillary systems.

Payment orders are submitted to RTGS for processing and are settled individually and continuously in central bank money, with immediate settlement finality.

The TARGET Instant Payment Settlement (TIPS) is a TARGET-HR service for the implementation and settlement of instant payments. Instant payments are settled in participants’ TIPS dedicated cash accounts (TIPS DCA). The service is primarily oriented to the clients of banks participants in the TIPS service. The TIPS service is accessible on a 24/7/365 basis, that is, it enables instant payment settlement in real time during the whole day each day of the year.

The direct participants of the TARGET-HR system are the Croatian National Bank (CNB), credit institutions (banks and savings banks) with their head offices in the Republic of Croatia that have been granted authorisation from the CNB, the Central Depository and Clearing Company (CDCC), SKDD-CCP Smart Clear d.d. and the Financial Agency as the operator of two ancillary systems - (AS).

For more Information: ECB's TARGET services

The TARGET-HR payment system is open for the processing of payments every working day in accordance with the Decision on the rules of operation of the TARGET-HR system (Appendix V. Schedule of operation of the TARGET system)

The TARGET-HR system is closed on the following days:

1 January (New Year's Day); Good Friday; Easter Monday; 1 May (Labour Day); 25 December (Christmas Day); 26 December (the first day after Christmas, St Stephen's Day).

T2S (TARGET2-Securities) is a TARGET-HR system service by which the Eurosystem provides securities settlement services based on the delivery-versus-payment principle in central bank money in real time, on a gross basis.

T2S is a common platform where securities and cash can be transferred between investors across Europe, using harmonised rules and practices.

Currently 23 European countries use T2S.

T2S lays the foundations for a single market for securities settlement and thus contributes to achieving greater integration of Europe’s financial market.

T2S also offers a set of sophisticated technical features, including optimisation algorithms to enhance settlement efficiency and advanced auto-collateralisation mechanisms.

The Croatian National Bank as the national central bank of the Eurosystem and the Central Depository and Clearing Company (CDCC) as the central securities depository (CSD) joined the T2S service on 11 September 2023 and commenced work on the single European securities settlement platform.

One of the key features of the T2S service is the application of an integrated model as a common IT platform for holding dedicated cash accounts (T2S DCA) with the central bank and securities accounts of capital market participants side by side, enabling fast and efficient settlement.

CDCC in the role of CSD is the sole direct participant in T2S and is in charge of opening securities accounts (SAC) of CDCC members in the T2S.

The settlement of the T2S cash leg is carried out in T2S dedicated cash accounts (T2S DCA). The opening of a T2S DCA falls within the competence of the Croatian National Bank.

T2S DCA is linked to one or several securities accounts held by the holder of the T2S DCA, for own account or for the accounts of clients, with one or more central securities depositories participating in T2S.

Liquidity on a T2S DCA is transferred from other TARGET accounts (CLM MCA, RTGS DCA, TIPS DCA) and liquidity transfers are also possible between different T2S DCA accounts.

One of the business roles of the Croatian National Bank as a central bank participating in T2S is the sole competence to open and hold T2S dedicated cash accounts (T2S DCA) for credit institutions participating in T2S.

Credit institutions – holders of T2S DCA accounts

More information: ECB's T2S


Documents and useful links – The website of the European Central Bank offers a single point of access to information on common features and relevant documents related to the T2S service (primarily for professional use).

User manuals (primarily for professional use).

TARGET-HR – National Service Desks (NSD)

The Croatian National Bank is fully responsible for the business relationships with the participants in TARGET-HR and maintains a National Service Desk (NSD) to help them meet their respective obligations.

The NSD is the single contact point for the participants in TARGET2-HR, responsible for timely answering queries, providing support for servicing requests and handling incidents.

NSDs also provide support to each other in the event of cross-border issues and/or queries and they work together, share and exchange information and experiences and assist in resolving problems, where necessary.


TARGET Services - Operational status (currently updated) – ECB's website

Decision confirming the compliance of TARGET2-HR with the criteria referred to in the Act on Settlement Finality in Payment and Financial Instruments Settlement Systems (OG 5/2016)


Documents and useful links on ECB's website - The page that offers the single point of access to information, common features and relevant documents related to TARGET services (primarily for professional use).

T2 User Detailed Functional Specifications (UDFS) – version R2023.NOV

T2 User Handbook (UHB)

Information for users