INTERBANK SETTLEMENT SYSTEMS

1. General description of the interbank settlement systems

Eesti Pank manages interbank settlement systems in Estonia. There are three systems available for settling payments between banks: ESTA, EP RTGS and TARGET2-Eesti.

Domestic payments are settled through the Settlement System of Ordinary Payments (ESTA) and the Real-Time Gross Settlement System (EP RTGS) for settling express transfers. Cross-border express transfers initiated in the euro are settled through the Trans-European Automated Real-time Gross Settlement Express Transfer System (TARGET2-Eesti) (see Figure 1).

Figure 1. Structure of the settlement systems managed by Eesti Pank

ESTA operates on a fixed time schedule and is used for settling ordinary credit-type payments between system participants. Payments are forwarded to the system in batches of payment orders. ESTA uses collaterals deposited by each participant of the system to settle payments. (Read more)

EP RTGS is based on real-time gross settlements where all payments are processed one-by-one and it is intended for processing urgent credit-type payments between the system participants. EP RTGS settles domestic payments in the Estonian kroon between system participants. (Read more)

TARGET2-Eesti settles in real time trans-European payments initiated in the euro, i.e. the system enables to settle both cross-border and domestic euro payments. In TARGET2 payments are processed one-by-one and the system is intended for settling urgent payments. (Read more).

Interbank settlement systems allow the banks use the international bank account number IBAN (International Bank Account Number) instead of the domestic account number in payment orders. The Estonian banks have agreed to terminate using domestic account numbers by 2010 at the latest.

Besides the settlement systems managed by Eesti Pank also the securities settlement system managed by the Estonian CSD and the card payment system managed by Pankade Kaardikeskus (card centre of banks) are operating in Estonia.

Statistics on payments settled in Eesti Pank's settlement system ESTA

Statistics on payments settled in Eesti Pank's settlement system RTGS

Legal framework of interbank settlement systems and rules for contracting parties

Frequently Asked Questions