TARGET2 balances – a truth more boring than fiction?

Abstract

As a result of the euro area sovereign debt crisis, the Eurosystem's internal receivables and liabilities have risen from the depths of technical details into headlines. What are these much discussed TARGET2 balances, and why have they grown again, although the financial crisis and sovereign debt crisis are already a thing of the past? The ECB's extensive securities purchase programme has been increasing the balances recently. Thus, the reason for the increase is not the same as during the darkest period of the sovereign debt crisis.