Most banks in Denmark, including all the major banks and mortgage credit institutions, hold accounts with Danmarks Nationalbank in the same way that private individuals hold accounts with retail banks. In other words, Danmarks Nationalbank serves as banker to the banks for payments in Danish kroner, where TARGET DKK functions as the banks’ online bank.
Participation in TARGET DKK
There are three ways to participate in TARGET Services:
- Direct participation – This provides full access to the system.
- Co-managee participation – Instead of having direct access, a co-managee operates through another bank that is a direct participant. In this arrangement, the co-managee delegates its payments to the co-manager but still maintains a folio account with Danmarks Nationalbank.
- Indirect participation – This is done through a direct participant. Indirect participants do not hold an account with Danmarks Nationalbank.
It is important to note that citizens and companies do not have direct access to accounts at Danmarks Nationalbank and therefore cannot participate in TARGET DKK, either directly or indirectly.
The average number of transactions per banking day in Danmarks Nationalbank RTGS system has been steadily increasing in recent years.
When measured by value, customer payments represent a growing proportion of the average interbank payments carried out in Danmarks Nationalbank RTGS system.
Banks can participate either directly or indirectly in TARGET DKK. Citizens and businesses cannot participate.
Information for TARGET DKK participants
All current account holders at Danmarks Nationalbank must participate in TARGET DKK. The rules and regulations for the account holders are set out in the terms and conditions for accounts.
System Opening Hours
TARGET DKK is open for payments on all Danish banking days from 7:00 AM to 5:00 PM. The new monetary policy day opens at 7:30 PM, when it becomes possible for participants to conduct liquidity transfers.
Prices
According to Danmarks Nationalbank’s price policy for TARGET DKK, Danmarks Nationalbank passes on its external costs etc. for running TARGET DKK to the participants, while Danmarks Nationalbank bears its internal costs.
Guidelines and forms
Guidelines for TARGET DKK can be found on Danmarks Nationalbank’s extranet on Microsoft Teams.
User Administration
Danmarks Nationalbank's administration of users in TARGET DKK is partially centralized. This means that the creation of Administrator users goes through Danmarks Nationalbank's user administration, but it is the banks' own responsibility to manage daily users.