Therefore, the central banks, in particular, are paying interest to interbank and commercial large-value payments. For that reason, they are setting up TARGET, the Trans-European Automated Real-time Gross settlement Express Transfer system, which will link the national RTGS systems in Europe. Non-participating countries can also be connected to TARGET. Monetary policy transactions have to be fully collateralized.
Securitisation will also be needed for payment systems. Since the European systems for the cross-border use of securities are not yet fully designed, the central banks are preparing the what is known as Correspondent Central Banking Model (CCBM), with the foreign central bank acting as correspondent.