In addition, the introduction of TARGET2 and the consolidation of all the EU RTGS systems into a single entity will substantially reduce the number of LVPS participants, as banks operating in several EU countries will be better positioned to manage their payments centrally.
We describe ten trends common to LVPSs around the world and identify the key drivers of these developments and the most important policy issues facing central banks (see box).
The main focus lies in promoting safety and efficiency in LVPSs and in maintaining overall financial stability.
The values and volumes originated over LVPSs grew exponentially until the turn of the century.
Transaction costs in various LVPSs have been falling since the late 1990s because the savings achieved through improvements in operating efficiency have been passed on to system participants in the form of lower fees.
TARGET and EURO1 are examples of LVPSs that settle cross-border payments in a local currency.
The settlement of low-value payments in LVPSs is discussed in more detail in the next section.
In fact, most LVPSs process a significant amount of relatively low-value payments.
Amos Kohn, president and CEO of Digital Power Corporation comments, "We are proud that our LVPS product and manufacturing capabilities have been qualified for this effort.
Kohn, "The cost-effective LVPS is suitable for installation on a wide range of platforms, such as self-propelled guns, artillery radars, rocket launchers, mortars, observation vehicles and other vehicles types, and is designed for use in varied combat situations.
John Dewey, President and CEO, stated, "The LVPS represents our first major offering in the military vehicle APU market.
The LVPS auxiliary power unit is an extension of Dewey's existing product line of man portable 2kW Military Tactical Diesel Generators - 11,000 of which have been fielded with various branches of the Department of Defense.