T2/T2S - Impacts on Luxembourg Institutions


T2/T2S - Impacts on Luxembourg Institutions

Impacts of the Vision 2020, the market infrastructure project of the Eurosystem, on Luxembourg credit institutions – Focus on the T2/T2S Consolidation.

T2/T2S Consolidation

In the context of its VISION 2020 program, the Eurosystem is launching the TARGET (or T2/T2S) Consolidation project. The project consists in gathering functional, technical and connectivity components of TARGET Services while keeping TARGET 2 (T2) and TARGET 2 Securities (T2S) two separate services.

Restructuration of the Eurosystem’s market infrastructure

Through the T2/T2S Consolidation project, the Eurosystem’s market infrastructure will have the following main restructuration impacts:

Click to enlarge the picture

Together, the Central Liquidity Management (CLM) and the Real Time Gross Settlement RTGS) will constitute the future TARGET2. T2, along with T2S, the Eurosystem’s platform for securities settlement, and TIPS, the instant payment settlement platform, will be accessible through the Eurosystem Single Market Infrastructure Gateway (ESMIG) and will share a range of common services.


Luxembourg institutions impacted by T2/T2S Consolidation

As explained in a letter from the Banque Centrale de Luxembourg addressed to all its account holders, this project will not only impact TARGET Participants but also all BCL account holders whether there are or not TARGET Participants.

As of July 2019, there were 67 Luxembourg institutions participating in TARGET among which 42 are Direct Participants while 25 are Indirect Participants.

As of June 2019, there were 132 credit institutions established in Luxembourg that have bank account held at the Luxembourg Central Bank (BCL) to fulfil their minimum reserve requirements.


Main impacts of the Consolidation

The T2/T2S Consolidation project is going to have multiple impacts on the institutions in the scope:

Click to enlarge the picture


Key milestones

For this project, the European Central Bank setup a timeline and hard deadlines to be met by the impacted institutions. The following timeline summarizes key milestones the institutions should follow:


Click to enlarge the picture

Attention points


  • Participants that are not ready as of 20 March 2023 will lose their access to TARGET2 Services
  • Unprepared banks might no longer be able to comply with their minimum reserves requirements


  • This project impacts the entire Luxembourg banking community and not only current TARGET2 participants
  • Follow-up of the BCL through a periodical reporting about participants’ readiness


  • There are already two deadlines that are exceeded
  • The project workload is very important for some actors
  • The project will impact several parts of the value chain

Insert CSS fragment. Do not delete! This box/component contains code needed on this page. This message will not be visible when page is activated.


Pascal Eber

Pascal Eber

Partner | Consulting–Banking, Insurance & Non-FSI

Pascal is a partner within the advisory and consulting department and has over 17 years of banking experience (front, middle, back-offices and IT) combined with his knowledge of consulting methodologi... More

Alexandre Havard

Alexandre Havard

Director | Consulting–Banking, Insurance & Non-FSI

Alexandre joined Deloitte Luxembourg in 2015 after 5 years as a Project Manager for an international banking group in Paris. He is now acting as a Director in our Consulting department, working mostly... More