INTERBANK SETTLEMENT SYSTEMS

General description of interbank settlement systems

Eesti Pank manages two interbank settlement systems: TARGET2-Eesti, the real-time subsystem for settling cross-border express payments, and the ESTA, the settlement system for retail payments.

TARGET2-Eesti enables the performance of domestic as well as cross-border payments, while the Settlement System of Ordinary Payments (ESTA) only deals with domestic payments (see Figure 1).

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

TARGET2-Eesti enables to perform real-time trans-European payments in euro, which means that it can be used for cross-border and domestic euro settlements. Payments via TARGET2 are processed individually and the system is intended for settling express payments (read more).

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

Development of interbank settlement systems

Statistics on payments settled in Eesti Pank's settlement system TARGET2-Eesti

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

Legal framework of interbank settlement systems and rules for contracting parties

Ensuring the business continuity of settlement systems