TARGET 2026: What Changes for Banks and Credit Entities in the ECB Payment System

Key data

Credit entities and national central banks operating in the TARGET system face a new obligation: to review and update their participation conditions. The Decision (EU) 2026/1754 of the ECB (ECB/2026/16), published on 24 July 2026, modifies Decision (EU) 2022/911 which regulates the conditions of TARGET-ECB and simultaneously repeals ECB Decision 2007/7, which has been in force for almost two decades.

TARGET —Trans-European Automated Real-time Gross Settlement Express Transfer— is the central infrastructure of the Eurosystem for real-time gross settlement of interbank payments in euros. Any change in its operational conditions directly affects the daily operations of the banks that use it.

What does this regulation establish?

ECB Decision 2026/16 acts on three simultaneous levels:

• Modifies Decision (EU) 2022/911, which is the current regulatory framework on TARGET-ECB conditions. This means that the terms under which the ECB participates in the system are updated.
• Repeals ECB Decision 2007/7, the previous regulation that governed ECB participation in TARGET and which has been in force since 2007.
• Updates the operational framework of the ECB as a participant in TARGET, in the context of the continuous modernization of Eurosystem payment infrastructures.

The reform may involve changes in the technical, operational or contractual requirements for participating entities. Although the publication does not detail the exact content of each technical modification, the practical effect is clear: existing participation agreements and internal procedures must be reviewed to verify their compliance with the new conditions.

Economic and operational impact

The direct impact of this decision is not of a sanctioning nature nor does it involve new published fees. Its effect is operational and compliance-related: entities that do not adapt their internal procedures and participation agreements to the new conditions could incur regulatory breaches with consequences for their access to the system.

Associated costs are primarily internal:

• Legal review of current TARGET participation agreements.
• Update of internal operational procedures linked to real-time settlement.
• Possible technical adaptations in systems connecting to TARGET.
• Coordination with the corresponding national central bank to verify compliance.

The repeal of ECB Decision 2007/7 —a framework almost 20 years old— indicates that the modernization is substantial. Entities that have based their procedures on the 2007 regulations should pay special attention to the differences with the new framework.

Who does it affect?

• Credit entities that are direct or indirect participants in the TARGET system (commercial banks, savings banks, credit cooperatives with access to the system).
• National central banks of the Eurosystem, in their role as managers of participation by entities in their jurisdiction.
• Operations and treasury departments of financial entities that manage interbank settlements in euros.
• Compliance and legal departments of banks with activity in the euro area.
• Technology providers that provide technical support for connecting entities to TARGET.

Practical example

A medium-sized Spanish bank, a direct participant in TARGET through the Bank of Spain, currently has its interbank settlement operational procedures documented in accordance with Decision (EU) 2022/911 and, in part, the former ECB Decision 2007/7.

With the entry into force of ECB Decision 2026/16, this bank must:

1. Identify which parts of its internal procedures make express reference to ECB Decision 2007/7 —now repealed— and update them.
2. Review its TARGET participation agreement to verify that it remains compliant with the modified conditions of Decision (EU) 2022/911.
3. Coordinate with its technology department if any new technical requirement affects the systems connecting to TARGET.
4. Document the review carried out as evidence of compliance before the supervisor.

This process, although it does not involve a direct regulatory cost in the form of a fee, does require an internal effort of legal and operational review that must be planned in advance.

What should companies do now?

1. Identify if they participate in TARGET (directly or indirectly) and what regulation currently governs their participation.
2. Review current participation agreements to detect references to ECB Decision 2007/7 —already repealed— and update affected documents.
3. Audit internal operational procedures for interbank settlement in euros to verify their compliance with Decision (EU) 2022/911 as modified by ECB/2026/16.
4. Contact the national central bank of reference (in Spain, the Bank of Spain) to obtain guidance on the specific changes applicable to their jurisdiction.
5. Evaluate the technical impact with the technology and systems teams that manage connectivity with TARGET.
6. Document the review process as evidence of due diligence in the event of compliance inspections.

Official source

Consult complete regulation in official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601754