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The cash remained in banks’ current accounts, and the balances have since returned to normal. Still, the incident highlights the critical role of the payments infrastructure for the euro area, and the risks that could be posed from a longer outage.
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The ECB said the disruption “was due to the technical issues with TARGET2 on Friday, which led to difficulties for banks and central banks to settle and determine the account balance.” Target2 is used to process more than 2 billion euros of transactions per minute. A long-enough halt to that flow of liquidity would start to have real-world effects very quickly.
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