The centralised payment system operated by Euro Area central banks that was set up in November 2007 to succeed Target1. Target stands for Trans-European Automated Realtime Gross Settlement Express Transfer System and it is the operational tool through which National Central Banks (NCBs) of Euro area member states provide payment and settlement services for intra-Euro area transactions. These transactions give rise to obligations which are aggregated and netted out at each business day leaving each NCB with a net Target2 balance against the ECB. A positive Target2 balance represents net claims against the ECB, while a negative balance represents net liabilities. Divergences in balances represent the decentralised distribution of central bank liquidity within the Euro system.