Resolution of 23 September 2025 by the Executive Committee of the Bank of Spain modifying the Resolution of 4 July 2022 approving the uniform conditions for participation in TARGET-Banco de España

III. OTHER PROVISIONS BANK OF SPAIN 19591 Resolution of 23 September 2025, by the Executive Committee of the Bank of Spain, modifying the Resolution of 4 July 2022 approving the uniform conditions for participation in TARGET-Banco de España.

On 4 July 2022, the Executive Committee of the Bank of Spain approved the resolution by which the uniform conditions for participation in TARGET-Banco de España were approved. TARGET-Banco de España is the Spanish payment system, part of the new generation automated trans-European real-time gross settlement system (TARGET). This resolution aims, among other things, to implement the uniform conditions for participation in TARGET established in Annex I of Guideline (EU) 2022/912 of the European Central Bank of 24 February 2022 on the new generation automated trans-European real-time gross settlement system (TARGET) (ECB/2022/8).

On 31 July 2025, the Governing Council of the European Central Bank approved Guideline (EU) 2025/1889 (ECB/2025/28), which updates the aforementioned Guideline (EU) 2022/912 with effect from 6 October 2025. In particular, in addition to introducing some editorial adjustments and changes in some definitions, Guideline (EU) 2025/1889 (ECB/2025/28) updates the uniform conditions for participation in TARGET fundamentally with three specific purposes.

First, the conditions under which non-bank payment service providers may participate in the systems comprising TARGET are established, in line with Decision (EU) 2025/222 of 27 January 2025 on the access of non-bank payment service providers to payment systems managed by Eurosystem central banks and to accounts of such banks (ECB/2025/2).

In relation to this point, it is appropriate to mention that, however, as of today, the Spanish legislator has not yet approved the necessary legal provisions to transpose the modifications to Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, and to Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems, operated by Regulation (EU) 2024/886 of the European Parliament and of the Council of 13 March 2024, amending Regulations (EU) No 260/2012 and (EU) 2021/1230 and Directives 98/26/EC and (EU) 2015/2366 as regards instant euro payments.

Likewise, it is also appropriate to mention that, as required by Guideline (EU) 2025/1889 (ECB/2025/28), if the Bank of Spain had registered in its own accounts holders of accessible BICs and accessible entities that were non-bank payment service providers, it should deregister them by 31 December 2025 at the latest (with the exception of accessible entities referred to in Article 7 of Part VII of the uniform conditions for participation in TARGET-Banco de España). In any case, the Bank of Spain does not maintain any of said payment service providers registered in its own accounts as holders of accessible BICs or accessible entities.

Second, the conditions applicable to a specific one-day credit facility are established, to which central counterparty entities that meet certain requirements and have not repaid the intraday credit by the end of the day may have access, without the need for prior approval by the Governing Council of the European Central Bank. The requirements for access to this credit facility are established in Decision (EU) 2025/1734 of the European Central Bank of 31 July 2025 on safeguards for the access of central counterparty entities to one-day credit from the Eurosystem in TARGET (ECB/2025/29).

And, third, the necessary modifications are introduced for the launch of a specific transfer functionality called "one leg out" (TIPS OLO) to allow the sending and receiving of payments to and from other systems, thereby enabling the settlement of transfers between different currencies settled on the TIPS platform.

Such changes make it necessary to modify the aforementioned Resolution of 4 July 2022, approving the uniform conditions for participation in TARGET-Banco de España, to reflect them also in said uniform conditions. Furthermore, as a consequence of the aforementioned changes, it is also planned to update the technical application that collects the fees applicable for services related to TARGET-Banco de España, the one that establishes the technical specifications for the processing of cash transfer orders, and the one that establishes the contingency and operational continuity procedures.

Therefore, in compliance with the provisions of Article 2 of the aforementioned Guideline (EU) 2025/1889 (ECB/2025/28); by virtue of the provisions of letters a) and h) of paragraph 1 of Article 23 of Law 13/1994, of 1 June, on the Autonomy of the Bank of Spain, and of letters a) and i) of paragraph 1 of Article 66 of the Internal Regulation of the Bank of Spain; and taking into account the provisions of Article 32 of Part I of the uniform conditions for participation in TARGET-Banco de España, approved by Resolution of the Executive Committee of the Bank of Spain of 4 July 2022,

The Executive Committee of the Bank of Spain agrees as follows:

First. Modification of the uniform conditions for participation in TARGET-Banco de España.

Include the modifications set out below in the current version of the uniform conditions for participation in TARGET-Banco de España, which are set out in the annex to the Resolution of the Executive Committee of the Bank of Spain of 4 July 2022, as modified by the Resolutions of the Executive Committee of the Bank of Spain of 16 November 2022, 31 October 2023, and 18 November 2024:

1. A new paragraph, 2 bis, is added between paragraphs 2 and 3 of Article 3 (General description of TARGET) of Part I, with the following wording:

"2 bis. TARGET allows sending or receiving instant payments denominated in currencies different from those of interoperable payment systems operating in central bank money and using the TIPS platform. Admissible payment systems in other currencies are those that are owned or managed by central banks that have signed a currency participation agreement with the ECBs of the Eurosystem allowing them to use the TIPS platform as the technical basis for settling instant payments."

2. Paragraph 2 of Article 4 (Access conditions) of Part I is modified, which will have the following wording:

"2. The Bank of Spain may, at its discretion, admit as participants the following classes of entities: a) treasury departments of the central or regional administration of EU Member States; b) public sector bodies of EU Member States authorized to maintain client accounts; c) investment firms: i) established in the EU or in the EEA, even when acting through a branch established in the EU or in the EEA, and ii) established outside the EEA, provided they act through a branch established in the EU or in the EEA; d) asset management companies acting in that capacity; d bis) non-bank payment service providers established in the EU or in the EEA, even when acting through a branch established in the EU or in the EEA; and e) credit institutions or entities of the classes listed in letters a) to d bis) above, provided they are established in a country with which the EU has concluded a monetary agreement granting them access to EU payment systems subject to the conditions established in the monetary agreement and provided that the applicable legal regime in that country is equivalent to the corresponding EU legislation."

3. Article 5 (Application procedure) of Part I is modified as indicated below:

(a) A new letter, h), is added at the end of paragraph 1, with the following wording:

"h) if the applicant is one of the entities referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I, comply: i) the relevant national legislative provisions transposing paragraph 1 of Article 35 bis of Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market; and ii) the procedures established in the relevant national legislative provisions transposing paragraph 2 of Article 35 bis of the aforementioned Directive (EU) 2015/2366."

(b) A new letter, f), is added at the end of paragraph 2, with the following wording:

"f) if the applicant is one of the entities referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I, for the purposes of complying with letter h) of the previous paragraph 1, a declaration issued by the relevant national competent authority, or a duly signed declaration as approved by the competent administrative body of the non-bank payment service provider, confirming in either case that the entity complies with: i) the conditions for applying for participation in designated payment systems established in the relevant national legislative provisions transposing paragraph 1 of Article 35 bis of the aforementioned Directive (EU) 2015/2366 and ii) the procedures established in the relevant national legislative provisions transposing paragraph 2 of Article 35 bis of the aforementioned Directive (EU) 2015/2366."

4. A new paragraph, 7, is added at the end of Article 10 (Obligations of the Bank of Spain and the participant) of Part I, with the following wording:

"7. The participant referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I shall submit to the Bank of Spain once a year a signed declaration as approved by its competent administrative body confirming that it continues to meet the requirements established in letter f) of paragraph 2 of Article 5 above of this Part I and the requirement to have adequate security controls to protect its systems against unauthorized access and use, as established in paragraph 1 of Article 20 below of this Part I. The Bank of Spain may verify the information contained in that declaration and request the supporting documents it reasonably considers necessary."

5. A new Article, 13 bis, is added between Articles 13 (Account management) and 14 (Minimum reserves) of Part I, with the following wording:

"Article 13 bis. Part I. Maximum holdings in the accounts of participants referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I and penalties for non-compliance.

1. The total funds held at the end of the business day by one of the participants referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I in all accounts it holds with the Bank of Spain shall not exceed a maximum holding calculated in accordance with the conditions indicated below. The funds referred to in this paragraph shall not include funds held by the participant referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I in accounts maintained for the SV RTGS D settlement procedure or the TIPS SV settlement procedure.

2. The maximum holding referred to in the previous paragraph 1 shall be calculated as follows: a) When the participant referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I has been operational for a period of twelve months prior to its application to open an account in TARGET, the maximum holding shall be double the maximum value of outgoing cash transfer orders settled, including, where applicable, SV transfer orders, but excluding liquidity transfers from the participant referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I, on any business day during the previous twelve natural months. The participant referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I shall include the detailed calculation of that maximum holding in its application to the Bank of Spain to participate in TARGET. b) When the participant referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I has not been operational for a period of twelve months prior to its application to open an account in TARGET, the maximum holding shall be double the total expected maximum value of its outgoing cash transfer orders, including, where applicable, SV transfer orders, but excluding liquidity transfers. The participant referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I shall include the detailed calculation of the proposed maximum holding in its application to open an account in TARGET. c) In the twelve-month period following the opening of the first active account in TARGET, the Bank of Spain shall recalculate the maximum holding for each of the participants referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I, monthly during the first quarter, using the actual maximum value of outgoing cash transfer orders settled, including, where applicable, SV transfer orders, but excluding liquidity transfers, since the opening of the account. From then on, the new calculation shall be carried out quarterly. The newly calculated maximum holding shall apply in the period between the business day following its notification by the Bank of Spain to each participant and the next new calculation. d) After the first twelve-month period following the opening of the first active account in TARGET, the Bank of Spain shall recalculate the maximum holding once a year. The new calculation shall be based on the actual total maximum value of all outgoing cash transfer orders of the participant referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I, including, where applicable, SV transfer orders, but excluding liquidity transfers, processed in TARGET in the previous twelve months, as well as on the information provided to the Bank of Spain in accordance with letters a) and b) above. e) Exceptionally, the Bank of Spain may, at its discretion, carry out a new ad hoc calculation of the maximum holding in the event that a substantial change in the settlement values of one of the participants referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I is imminent or has already occurred, which could lead to non-compliance with the applicable maximum holding. The new calculation shall be carried out in accordance with the provisions of the previous letter b).

3. In the event that the total funds held in the accounts of one of the participants referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I exceed the applicable maximum holding, said participant shall take immediate measures to reduce them to within the limit of the applicable maximum holding. If it is not possible to reduce them due to the entry of a payment order shortly before the close of the business day, they shall be reduced without undue delay after the start of the following business day.

4. If one of the participants referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I is a direct participant in a payment system that is a TARGET SV and uses the SV RTGS D settlement procedure or the TIPS SV settlement procedures, it shall communicate to the Bank of Spain monthly both the maximum one-day holdings and average daily holdings in the TARGET SV technical accounts, as well as the maximum and average daily amounts of settlement obligations processed in the SV.

5. If one of the participants referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I fails to comply with paragraphs 1 to 3, the Bank of Spain shall impose a penalty of 0.03% of the total amount exceeding the maximum holding held in all accounts by said participant at the end of the business day in TARGET, and an additional daily penalty of 1,000 euros for each day of non-compliance.

6. The accounts referred to in paragraph 1 shall be reviewed no later than twelve months after 6 October 2025, and subsequently at least once every three years. The methods of calculating the maximum holding described in paragraph 2 shall be reviewed no later than twelve months after 6 October 2025, and subsequently at least once every three years."

7. Letter b) of paragraph 1 of Article 18 (Entry of cash transfer orders into the system and irrevocability) of Part I is modified, which will have the following wording:

"b) instant payment orders and TIPS OLO transfer orders submitted to TARGET-Banco de España shall be considered accepted and irrevocable at the moment the corresponding funds are reserved in the participant's TIPS DCA or in its TIPS SV technical account;"

7. Article 21 (Clearing system) of Part I is modified, which will have the following wording:

"Article 21. Part I. Clearing system.

If, due to a technical malfunction of TARGET, a cash transfer order cannot be settled on the same business day it was validated, or could not be submitted, the Bank of Spain shall offer compensation to the affected participant in accordance with the special procedure established in Annex II."

8. Two new paragraphs, 6 and 7, are added at the end of Article 25 (Suspension and extraordinary termination of participation) of Part I, with the following wording:

"6. If one of the participants referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I has not remedied a serious breach of the requirements of Article 13 bis above of this Part I, the Bank of Spain may terminate its participation in TARGET under the circumstances described in letters b) or c) of the previous paragraph 2. Notwithstanding the provisions of the previous paragraph 2, the Bank of Spain may terminate its participation in TARGET with one month's notice and impose an additional one-time penalty of 1,000 euros for each account closed. For the purposes of this paragraph, serious breaches shall include, among others, the following: a) systematic or repeated infringement of the applicable maximum holding, including the case, among others, of maintaining a significant amount above the applicable maximum holding; b) failure to reduce the amount held in the relevant accounts to within the limit of the applicable maximum holding by the end of the business day following the day on which the funds are received; c) failure to comply with the obligation to communicate monthly both the maximum one-day holdings and average daily holdings in the TARGET SV technical accounts, as well as the maximum and average daily amounts of settlement obligations processed in the corresponding SV.

7. If one of the participants referred to in letter d bis) of paragraph 2 of Article 4 above of this Part I fails to comply with the requirements of paragraph 7 of Article 10 above of this Part I, the Bank of Spain may terminate its participation in TARGET under the circumstances described in letters b) or c) of the previous paragraph 2. Notwithstanding the provisions of the previous paragraph 2, the termination shall be notified to the participant one month in advance."

8. Article 1 (Opening and management of MCAs) of Part II is modified, which will have the following wording:

"Article 1. Part II. Opening and management of MCAs.

1. The Bank of Spain shall open and manage at least one MCA for each participant, unless it is an SV, other than an admissible CCP, that only uses the SV RTGS settlement procedure or the TIPS SV settlement procedure, in which case the use of an MCA shall be at the discretion of the SV.

2. For the purposes of settling monetary policy operations in accordance with the Guideline on General Documentation and interest on monetary policy and other operations with the Bank of Spain, the participant shall designate a primary MCA held with the Bank of Spain.

3. The primary MCA designated in accordance with the provisions of the previous paragraph 2 shall also be used for the following: a) remuneration in accordance with Article 12 of the previous Part I, unless the participant has designated another participant in TARGET-Banco de España for that purpose; b) the granting of intraday credit, where applicable; c) the granting of one-day credit to admissible CCPs through the CCP credit facility, where applicable.

4. The negative balance of a primary MCA shall not be lower than the credit line (if one has been granted). There shall be no debit balance in an MCA that is not a primary MCA."

5. Article 10 (Entities qualified to obtain intraday credit) of Part II is modified as indicated below:

(a) Paragraph 5 is modified, which will have the following wording:

"5. The Bank of Spain may provide access to the CCP credit facility to admissible CCPs, within the scope of letter c) of paragraph 2 of Article 139 of the Treaty on the Functioning of the European Union, jointly with Articles 18 and"