Director of the Payments Department National Bank of ......Răzvan Vartolomei Payments Department...

BANCA NAŢIONALĂ A ROMÂNIEI

NATIONAL BANK OF ROMANIA

Răzvan Vartolomei

Director of the Payments Department

National Bank of Romania

SWIFT Business Forum Romania 2013

Bucharest, 7 November 2013



VISA

NATIONAL BANK OF ROMANIA (NBR)

TARGET2 - ROMANIA TARGET2-Securities ReGIS

ReGIS (RTGS)

SENT (ACH)

MASTERCARD

SaFIR (SSS)

Large value/urgent

Interbank/customer

payments

Credit transfers

OTC market for T-

bills and central

bank’s

certificates of

deposit Low value bulk

Credit transfers

(SCT went live on 6/11/2012)

Direct debits

(SDD go-live on 7/11/2014)

Truncated cheques, bills of

exchange and promissory notes

Bucharest Stock

Exchange market

Payment card

transactions

TARGET2 (RTGS) SENT-EUR (ACH)

RoClear (SSS)

RoClear

(SSS)

Large value/urgent

Interbank/customer

payments

Credit transfers

Low value bulk

SEPA Credit transfers

(SCT go-live on 13/12/2013)

SEPA Direct debits

(SDD go-live on 7/11/2014)

Securities transactions

Lei (RON) Euro (EUR)

SIBEX (SSS)

Sibiu Stock

Exchange market

NBR

NBR

(Go-live on

22/06/2015) Depozitarul Central S.A.

Depozitarul Central S.A.



ReGIS value of transactions(bln. RON)

1,999.35

1,927.24

3,530.01

5,126.37

5,119.60

5,928.23

6,365.03

7,608.33

0.00

1,000.00

2,000.00

3,000.00

4,000.00

5,000.00

6,000.00

7,000.00

8,000.00

2005 2006 2007 2008 2009 2010 2011 2012

ReGIS volume of transactions(mil.)

0.82

1.55

2.10

2.80

2.522.62

2.953.17

0.00

0.50

1.00

1.50

2.00

2.50

3.00

3.50

2005 2006 2007 2008 2009 2010 2011 2012 Source: National Bank of Romania, Payments Department

Participants: 40 credit institutions, State

Treasury, NBR + 6 ancillary systems

80.75%

19.25%

MT103

MT202

Payment messages structure

(by value, 2012)

91.96%

8.04%

MT103

MT202


(by volume, 2012)



Participants: 22 credit institutions + NBR

Source: National Bank of Romania, Payments Department

TARGET2-Romania: Volume of transactions

11,688

20,323

22,056

19,214 18,953

17,544

14,476 15,274

16,925 15,921

17,966

19,993

23,282

21,630

19,997 19,337

17,871 16,843

14,882 14,957

16,220

19,452

17,120

15,959

19,483

17,039

0

5,000

10,000

15,000

20,000

25,000

TARGET2-Romania: Value of transactions (mil. EUR)

4,962

9,251

11,470

8,424 7,926 7,727 7,877

6,601

9,368

7,885

10,114 10,539

13,375

9,994

7,383

10,890

11,735

8,826

10,399

6,259

7,453 7,109

8,118 8,604

10,761

9,317

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000


(by value, 2012)

5.79%

94.21%

MT202

MT103

90.83%

9.17%

MT202

MT103


(by volume, 2012)



1. TARGET2 migration to ISO 20022

• New ISO 20022 strategy for TARGET2 approved by the PSSC in October 2012.

• First consultation on functional changes to be implemented in TARGET2 took place in May-

June 2013, via National User Groups (NUGs) and TARGET2 Working Group (TWG).

• Second round of users’ consultation is planned for November-December 2013.

• General Functional Specification document will be finalized in 2014.

• Final version of User Detailed Functional Specifications will be available in October 2015.

• Next phase of the project consists of software development and testing.

• Go-live scheduled for November 2017.

2. Ancillary systems in TARGET2-Romania

13/12/2013 => SENT (i.e. the retail payments system owned and operated by TRANSFOND

S.A.) will start operating as first ancillary system participating in TARGET2-Romania (i.e. SEPA

compliant CSM, based on EACHA interoperability framework).



3. TARGET2-Securities (T2S)

What is T2S?

• An integrated settlement platform provided by the Eurosystem for DVP settlement of securities transactions in central bank money within EEA (euro + other currencies).

Participating entities

• 24 CSDs signed the T2S Framework Agreement (out of which 18 CSDs from euro area).

• Euro area NCBs, ECB and 4 non-euro area TARGET2 NCBs (Lithuania, Romania, Latvia and Denmark).

• Only one non-euro area NCB signed the Currency Participation Agreement (i.e. Danmarks Nationalbank will make the Danish krone available in T2S in 2018).

T2S programme plan



T2S project in Romania

• Depozitarul Central S.A. will connect to T2S in the first wave (22 June 2015), for settling

the euro cash leg of securities transactions.

• As operator of TARGET2-Romania, NBR will provide settlement services in euro on the T2S

platform for Romanian payment banks (settlement in Lei not envisaged).

• NBR will open/manage dedicated cash accounts (DCAs) for eligible financial institutions,

based on contracts signed with DCA holders (legally, DCAs will be part of the TARGET2

perimeter and will operate according to TARGET2 Guideline; DCAs will be dedicated to

settlement purposes only and will be linked to the cash accounts in the RTGS systems:

TARGET2 and/or national RTGS systems).

• NBR will monitor liquidity in T2S and liquidity flows between TARGET2-Romania and T2S, it

will handle the failed liquidity transfers and will coordinate/manage the abnormal situations

impacting the cash side (T2S & T2).

• No auto-collateralization will be provided by NBR to payment banks.

• No central bank operations/accounts in T2S.



Credit Institutions

Cash settlement

for DVP transactions

Lei settlement

in ReGIS

(i.e. domestic RTGS)

Euro settlement

in T2S Depozitarul Central S.A.

RoClear

(Securities Settlement

System)

Should the Romanian banks be interested in acting as payment banks in T2S?

• Currently, RoClear system uses 17 banks for settling the Lei cash leg in ReGIS, out of which 12 banks are also participants in TARGET2-Romania.

• An opportunity for banks to maintain their securities (custody & settlement) business?



Thank you for your attention!

Răzvan Vartolomei

Payments Department

National Bank of Romania

E-mail: [email protected]

Phone: +40 21 313 06 93

TARGET2 Management Division

E-mail: [email protected]

Phone: +40 21 307 08 38

Website: www.bnr.ro
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]://www.bnr.ro

Director of the Payments Department National Bank of ......Răzvan Vartolomei Payments Department...

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