Unlike other schemes such as the SEPA credit transfer and SEPA direct debit schemes, the SCT Inst scheme was not made mandatory for PSPs, as instant payments were originally considered a niche service. However, this is now no longer the case.
By further increasing the amount of the most loss-absorbing form of capital that is required to be held by the firms that potentially pose the greatest risk to financial stability, we intend to reduce the probability of failure of these firms to offset the greater negative externalities their failure would have on the financial system and to offset any funding advantage such firms may have because of their perceived status as too-big-tofail.