Decision No. 2025-03 of 6 October 2025 amending Decision No. 2022-05 of 6 July 2022 on harmonised conditions for participation in the new generation transeuropean automated real-time gross settlement express transfer system (TARGET)

1 Decision No. 2025-03 of 6 October 2025 amending the Decision of the Governor of the Bank of France No. 2022-05 of 6 July 2022 on harmonised conditions for participation in the new generation transeuropean automated real-time gross settlement express transfer system (TARGET)

THE GOVERNOR OF THE BANK OF FRANCE

Having regard to:

• the Treaty on the Functioning of the European Union, and in particular Article 127(2), first and fourth indents,
• the Statute of the European System of Central Banks and of the European Central Bank, and in particular Articles 3.1, 17, 18 and 22 thereof,
• ECB Guideline (EU) 2022/912 of 24 February 2022 on the new generation transeuropean automated real-time gross settlement express transfer system (TARGET) and repealing Guideline 2013/47/EU (ECB/2012/27) (ECB/2022/8),
• ECB Guideline (EU) 2023/2415 of 7 September 2023 amending Guideline (EU) 2022/912 on the new generation transeuropean automated real-time gross settlement express transfer system (TARGET) (ECB/2022/8) (ECB/2023/22), Guideline (EU) 2024/2616 of the European Central Bank of 30 July 2024 amending Guideline (EU) 2022/912 on the new generation transeuropean automated real-time gross settlement express transfer system (TARGET) (ECB/2022/8) (ECB/2024/20), Guideline (EU) 2025/28 of the European Central Bank of 31 July 2025 amending Guideline (EU) 2022/912 on the new generation transeuropean automated real-time gross settlement express transfer system (TARGET) (ECB/2022/8),
• the Monetary Agreement between the European Union and the Principality of Monaco of 29 November 2011,
• the Monetary and Financial Code, and in particular Article L. 142-8 thereof,
• the Decision of the Governor of the Bank of France No. 2022-05 of 6 July 2022 on harmonised conditions for participation in the new generation transeuropean automated real-time gross settlement express transfer system (TARGET), as amended.

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DECIDES

Article 1 Modifications

The Decision of the Governor of the Bank of France No. 2022-05 of 6 July 2022 on harmonised conditions for participation in the new generation transeuropean automated real-time gross settlement express transfer system (TARGET) is amended as follows:

1. In the first part:

a) in Article 3, the following paragraph 2 bis is inserted:

"2 bis. TARGET allows the sending or receiving of instant cross-currency payments from interoperable payment systems in other currencies operating in central bank money and using the TIPS platform. Eligible payment systems in other currencies are those owned or operated by central banks that have signed a monetary participation agreement with the NCBs of the Eurosystem, enabling them to use the TIPS platform as the technical basis for settling instant payments."

b) in Article 4, paragraph 2 is replaced by the following text:

"2) The Bank of France may, at its own discretion, also admit the following entities as participants:

a) the Treasury departments of central or regional administrations of Member States; b) public sector bodies of Member States authorised to hold customer accounts; c) i) investment firms established in the Union or the EEA, including when acting through a branch established in the Union or the EEA; and ii) investment firms established outside the Union or the EEA, provided that they act through a branch established in the Union or the EEA; d) entities managing PSs and acting in that capacity; d bis) non-bank payment service providers established in the Union or the EEA, including when acting through a branch established in the Union or the EEA; e) credit institutions or any entity of the type listed in points a) to d bis), which are established in a country with which the Union has concluded a monetary agreement allowing access by each of these entities to the payment systems of the Union, subject to the conditions laid down in the monetary agreement and provided that the legal regime applicable in that country is equivalent to the relevant Union legislation."

c) in Article 5, paragraph 1, the following point h) is added:

"h) if the applicant is an entity referred to in Article 4(2)(d bis), compliance with i) the provisions of national law transposing Article 35a(1) of Directive (EU) 2015/2366 of the European Parliament and of the Council1; and ii) the procedures laid down in the relevant provisions of national law transposing Article 35a(2) of Directive (EU) 2015/2366."

d) in Article 5, paragraph 2, the following point f) is added:

"f) if the applicant is an entity referred to in Article 4(2)(d bis), for the purpose of compliance with Article 5(1)(h), either a declaration issued by the relevant national competent authority or a declaration duly signed and approved by the competent management body of the non-bank payment service provider, confirming in both cases that this entity complies with: i) the conditions for application for participation in designated payment systems, as set out in the relevant provisions of national law transposing Article 35a(1) of Directive (EU) 2015/2366; and ii) the procedures laid down in the relevant provisions of national law transposing Article 35a(2) of Directive (EU) 2015/2366."

e) in Article 10, the following paragraph 7 is added:

"7. A participant referred to in Article 4(2)(d bis) shall submit to the Bank of France once a year a signed declaration, approved by its competent management body, confirming the participant's continuous compliance with the requirements set out in Article 5(2)(f) and its continuous compliance with the obligation to implement adequate security controls to protect its systems against any unauthorised access and use as set out in Article 20(1). The Bank of France is empowered to verify the information provided in this declaration and to request any supporting documents it deems reasonably necessary."

1 Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35, ELI: http://data.europa.eu/eli/dir/2015/2366/oj).

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f) the following Article 13a is inserted:

"Article 13a Maximum holding amounts on accounts held by participants referred to in Article 4(2)(d bis) and penalties in case of exceeding these amounts

1. The total of funds held at the end of the business day by a participant referred to in Article 4(2)(d bis) on all accounts held by it with the Bank of France shall not exceed a maximum holding amount calculated in accordance with the conditions set out below. The funds referred to in this paragraph do not include funds held by a participant referred to in Article 4(2)(d bis) on accounts held for the purpose of the RTGS settlement procedure D of a PS or the TIPS settlement procedure of a PS.

2. The maximum holding amount referred to in paragraph 1 is calculated as follows:

a) When a participant referred to in Article 4(2)(d bis) has carried out activities for a period of twelve months prior to its application for the opening of an account in TARGET, the maximum holding amount is equal to double the maximum value of outgoing cash transfer orders, including, if applicable, transfer orders from an exogenous system, but excluding liquidity transfers, of the participant referred to in Article 4(2)(d bis) on any business day during the previous twelve calendar month period. The participant referred to in Article 4(2)(d bis) shall include the detailed calculation of this maximum holding amount in its TARGET participation application submitted to the Bank of France.

b) When a participant referred to in Article 4(2)(d bis) has not carried out activities for a period of twelve months prior to its application for the opening of an account in TARGET, the maximum holding amount is equal to double the maximum total expected value, for the participant, of outgoing cash transfer orders, including, if applicable, transfer orders from an exogenous system, but excluding liquidity transfers. The participant referred to in Article 4(2)(d bis) shall include its detailed calculation of the proposed maximum holding amount in its application for the opening of an account in TARGET.

c) During the twelve-month period following the opening of the first active TARGET account, the Bank of France shall recalculate the maximum holding amount for each participant referred to in Article 4(2)(d bis) each month during the first quarter based on the actual maximum value of outgoing settled cash transfer orders, including, if applicable, transfer orders from an exogenous system, but excluding liquidity transfers, since the opening of the account. Thereafter, the new calculation shall be performed each quarter. This newly calculated maximum holding amount shall apply from the business day following the notification of the new calculation to each participant referred to in Article 4(2)(d bis) by the Bank of France and until the next new calculation.

d) After the first twelve-month period following the opening of the first active account in TARGET, the Bank of France shall recalculate the maximum holding amount once a year. The new calculation shall be based on the actual maximum total value of all outgoing cash transfer orders of a participant referred to in Article 4(2)(d bis), including, if applicable, transfer orders from an exogenous system, but excluding liquidity transfers, carried out during the previous twelve-month period in TARGET, as well as on the information provided to the Bank of France in accordance with points a) and b).

e) In exceptional circumstances, the Bank of France may, at its discretion, choose to recalculate the maximum holding amount on an ad hoc basis if a significant change in the settlement values of a participant referred to in Article 4(2)(d bis) is about to occur or has already occurred and is likely to result in non-compliance with the applicable maximum holding amount. Such a new calculation shall be performed in accordance with point b).

2. If the total of funds credited to the accounts of a participant referred to in Article 4(2)(d bis) exceeds the applicable maximum holding amount, that participant shall take immediate measures to reduce the total of funds held to the maximum holding amount or to a lower amount. If such a reduction is not possible due to an incoming payment made shortly before the end of the business day, the reduction shall take place as soon as possible after the start of the following business day.

3. If a participant referred to in Article 4(2)(d bis) is a direct participant in a payment system that is an exogenous system in TARGET, and relies on the RTGS settlement procedure D of a PS or on the TIPS settlement procedures of a PS, it shall declare to the Bank of France each month both the maximum amounts and the average daily amounts held on a day-to-day basis on the technical accounts of the relevant exogenous system in TARGET. This participant shall also declare each month its maximum and average daily settlement obligations processed in the corresponding exogenous system.

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4. If a participant referred to in Article 4(2)(d bis) fails to comply with paragraphs 1 to 3, the Bank of France shall impose a penalty equal to 0.03 % of the total amount exceeding the maximum holding amount held on all accounts by the participant at the end of the business day in TARGET, as well as an additional daily penalty of EUR 1,000 for each day of non-compliance.

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

g) in Article 18, paragraph 1, point b) is replaced by the following text:

"b) instant payment orders and TIPS OLO transfer orders are considered to be introduced into TARGET-BANK OF FRANCE and irrevocable at the moment when the relevant funds are reserved on the participant's TIPS NCA or on its TIPS technical account of a PS;"

h) Article 21 is replaced by the following text:

"Article 21 Compensation mechanism

If, due to a technical malfunction of TARGET, a cash transfer order cannot be settled on the same business day on which it was accepted or could not be presented, the Bank of France shall propose to compensate the participant concerned in accordance with the special procedure provided for in Appendix II."

i) in Article 25, the following paragraphs 6 and 7 are added:

"6. If a participant referred to in Article 4(2)(d bis) has not remedied a significant non-compliance with the requirements of Article 13a, the Bank of France may terminate its participation in TARGET under the circumstances described in paragraph 2, point b), or in paragraph 2, point c). By way of derogation from paragraph 2, the Bank of France may terminate its participation in TARGET subject to one month's notice and impose a single additional penalty of EUR 1,000 for each account closed. For the purposes of this paragraph, each of the following shall be considered, among other things, as a case of significant non-compliance:

a) systematic or repeated failure to comply with the applicable limit for the maximum holding amount, including, but not exclusively, a failure resulting in a significant amount exceeding this limit; b) failure to reduce the amount held on the relevant accounts to the maximum holding amount or to a lower amount before the end of the business day following the business day of receipt of the funds. c) failure to comply with the obligation to declare monthly the maximum and average daily amounts held on a day-to-day basis on the technical accounts of the relevant exogenous system in TARGET and its maximum and average daily settlement obligations processed in the corresponding exogenous system.

7. If a participant referred to in Article 4(2)(d bis) fails to comply with the requirements set out in Article 10(7), the Bank of France may terminate its participation in TARGET under the circumstances described in paragraph 2, point b), or in paragraph 2, point c). By way of derogation from paragraph 2, the participant shall be warned with one month's notice."

8. In the second part:

a) Article 1 is replaced by the following text:

"Article 1 Opening and management of an NCA

1. The Bank of France shall open and operate at least one NCA for each participant, unless the participant is a PS that is not an eligible central counterparty using only RTGS or TIPS settlement procedures of a PS, in which case the use of an NCA is left to the discretion of the PS.

2. For the purpose of settling monetary policy operations provided for in Decision No. 2015-01 of 22 April 2015 on the implementation of the monetary policy and interbank credit of the Bank of France and the settlement of interest arising from monetary policy and other operations with the Bank of France, the participant shall designate a primary NCA held with the Bank of France.

3. The primary NCA designated in accordance with paragraph 2 shall also be used for the following purposes:

a) remuneration referred to in the first part, Article 12, unless the participant has designated another participant in TARGET-BANK OF FRANCE for this purpose; b) the granting of intraday credit, if applicable. c) the granting of twenty-four-hour credit to eligible central counterparties through the central counterparty credit facility, if applicable.

4. No negative balance on a primary NCA may be lower than the credit line (if granted). There shall be no debit balance on an NCA that is not a primary NCA."

b) in Article 10, paragraph 5 is replaced by the following text:

"5. The Bank of France may grant access to the central counterparty credit facility to eligible central counterparties, within the framework of Article 139(2)(c) of the Treaty read in conjunction with Articles 18 and 42 of the Statutes of the ESCB and Article 1(1) of Decision No. 2015-01 of 22 April 2015 on the implementation of the monetary policy and interbank credit of the Bank of France. Eligible central counterparties are those which, at any relevant time:

a) are authorised as central counterparties in accordance with Union law or applicable national law; b) are entities eligible for the purposes of paragraph 2, point d); c) are established in the euro area; d) have access to intraday credit; e) meet the collateral requirements for financial soundness in accordance with Article 2 of Decision (EU) 2025/XX (ECB/2025/29); f) meet the collateral requirements for sound liquidity risk management in accordance with Article 3 of Decision (EU) 2025/XX (ECB/2025/29)."

(*) Decision (EU) 2025/XX of the European Central Bank of 31 July 2025 on collateral for access by central counterparties to the Eurosystem's twenty-four-hour credit in TARGET (ECB/2025/29) (not yet published in the Official Journal)."

c) in Article 10, paragraphs 6 and 7 are deleted.

d) Article 11 is replaced by the following text:

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"Article 11 Eligible collateral for credit

Intraday credit and access to the central counterparty credit facility are based on eligible collateral. Eligible collateral consists of the same assets as those eligible for Eurosystem monetary policy operations and is subject to the same valuation and risk control rules as those provided for in the fourth part of Decision No. 2015-01 of 22 April 2015 on the implementation of the monetary policy and interbank credit of the Bank of France."

e) the following Article 12a is inserted:

"Article 12a Credit granting procedure for the central counterparty credit facility

1. The interest rate applied to the central counterparty credit facility is the marginal lending facility rate.

2. The failure of an eligible central counterparty, which is not an eligible counterparty for Eurosystem monetary policy operations and which does not have access to the marginal lending facility to repay intraday credit at the end of the day, shall be automatically considered as a request for access to the central counterparty credit facility submitted by that eligible central counterparty. If that eligible central counterparty holds more than one NCA or one or more NCAs, any end-of-day balance on these accounts shall be taken into account for the purpose of calculating the number of automatic recourses, by the entity, to the central counterparty credit facility. This shall not result in any equivalent release of assets previously deposited as collateral for the underlying intraday credit exposure.

3. An eligible central counterparty referred to in paragraph 2 that, for any reason, fails to repay twenty-four-hour credit shall be subject to the following penalties:

a) if, for the first time during a twelve-month period, the eligible central counterparty fails to repay twenty-four-hour credit, that central counterparty shall be subject to a penalty interest calculated at a rate of five percentage points above the marginal lending facility rate on the amount of the debit balance; b) if, for the second time at least during the same twelve-month period, the eligible central counterparty fails to repay twenty-four-hour credit, the penalty interest referred to in point a) shall be increased by 2.5 percentage points for each new instance of non-compliance occurring during that twelve-month period.

4. The Governing Council of the ECB may decide to lift or reduce the penalties imposed in accordance with paragraph 3, if the debit position of the participant concerned observed at the end of the day is attributable to a case of force majeure or a technical malfunction of TARGET, as defined in Title III of the second part of Decision No. 2015-01 of 22 April 2015 on the implementation of the monetary policy and interbank credit of the Bank of France.

5. The Bank of France may communicate to the ECB and the national competent authorities the amount of intraday credit and twenty-four-hour credit granted to an eligible central counterparty."

f) Article 13 is replaced by the following text:

"Article 13 Limitation, suspension, or termination of intraday credit

1. The Bank of France shall suspend or remove access to intraday credit in the event of any of the following failure cases:

a) the participant's primary NCA with the Bank of France is suspended or closed; b) the participant no longer meets one of the conditions for granting intraday credit set out in Article 10; c) a competent authority, judicial or otherwise, decides to implement liquidation proceedings against the participant or the appointment of a liquidator or equivalent administrator for the participant or another similar procedure; d) the participant is subject to a decision to freeze funds or other measures imposed by the Union, limiting its ability to dispose of its funds;

2. The Bank of France shall limit, suspend or remove access to intraday credit in the event of any of the following failure cases:

a) the participant's eligibility as a counterparty for Eurosystem monetary policy operations has been suspended, or has been terminated. b) the access of the central counterparty to the