(2)This measure is intended to improve operational and risk efficiencies for both the Eurosystem and the eligible monetary policy counterparties by reducing the operational workload and risk related to daily transfers of funds to the Eurosystem’s deposit facility, reducing the impact of TARGET incidents at the end of the TARGET business day, and addressing a number of issues related to the application of minimum reserve requirementsnote. Moreover, the measure will support the smooth functioning of payment systems and instant payments settlement in the context of the increased need for funds available for settlement on the TARGET Instant Payment Settlement (TIPS) platform to settle growing volumes of instant payments following the entry into force of Regulation (EU) 2024/886 of the European Parliament and of the Councilnote. Aligning the remuneration of excess reserves with the remuneration rate of the deposit facility is expected to reduce large daily transfers from the current accounts of the eligible counterparties to the Eurosystem’s deposit facility, aimed at benefiting from remuneration at the deposit facility rate.
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