Alan Greenspan identified the role of NBFIs in strengthening an economy, as they provide “multiple alternatives to transform an economy’s savings into capital investment [which] act as backup facilities should the primary form of intermediation fail”.2 On the other hand, the NBFIs offer an alternative to typical commercial banking saving-investment products.
Whereas all payments in TARGET were processed by the NCBs through their local RTGS systems, TARGET2 uses a single technical platform, provided jointly by three Eurosystem central banks – the Banca d’Italia, the Banque de France and the Deutsche Bundesbank – and operated on behalf of the Eurosystem, the owner of the TARGET2 system.