ECB updates payment pricing, flags financial stability risks
The European Central Bank's Governing Council approved a revised pricing policy for real-time gross settlement (RTGS) and published its latest Financial Stability Review. The Council also addressed various regulatory compliance and governance matters.
Financial Stability Review highlights key vulnerabilities
The May 2026 Financial Stability Review (FSR), approved for publication on May 20, 2026, provides an overview of key financial stability vulnerabilities in the euro area.
This edition includes four special articles.
The first explores how advanced AI-based tools can enhance sentiment analysis.
The second examines the divergence between rising corporate insolvencies and low aggregate non-performing loan ratios in euro area banks.
The third assesses the impact of macroprudential policies on household lending and real estate prices, while the fourth considers financial system risks related to private credit.
The FSR is expected to be published on the ECB website on May 27, 2026.
These insights inform the Council's ongoing assessment of systemic risks.
T2/RTGS pricing and TARGET changes
On April 28, 2026, the Governing Council approved a revised pricing policy for Real-Time Gross Settlement (RTGS), effective July 1, 2026.
This includes increased monthly fixed fees for cash accounts and a recalibration of volume-based price corridors, aiming for full cost recovery for T2/RTGS settlement by 2038.
The Council also mandated a comprehensive review of the T2/RTGS pricing policy in 2028.
Additionally, on May 4, 2026, the Council issued Guideline ECB/2026/11, amending Guideline (EU) 2022/912 on the new generation TARGET system.
These amendments reflect technical changes made to TARGET services in 2026, particularly the inclusion of the European Payment Council's 'One-Leg Out Instant Credit Transfer' procedure in TIPS (TARGET Instant Payments Settlement) and the aforementioned T2/RTGS fee structure changes.
The quiet work of stability
While often overshadowed by interest rate decisions, these diverse resolutions underscore the ECB's foundational role in maintaining financial system integrity.
Updates to payment infrastructures and regular stability assessments are critical for operational resilience and identifying nascent risks.
This continuous, behind-the-scenes work is indispensable, even if its impact is less immediately visible to the broader public.
Source: Beschlüsse des EZB-Rats (ohne Zinsbeschlüsse)
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