INTRA-BANK COMPETITIVE EQUITY CAPITAL-MAR KETS BASED ON IT AND NETWORKS

For staying competitive in an emerging European market the banking fir m must respond quickly to multiple changes in market conditions. In ma ny cases, these changes have worked to promote decentralization. Howev er, local decisions need to be coordinated. Especially when coping wit h increasing restrictions to risk-taking via regulations imposed by th e European regulation authorities, the need for an efficient coordinat ion mechanism becomes key. In this paper the design of an intra-bank e lectronic capital market is presented. The objectives are 1) better al location of scarce (equity) capital to autonomous business units simul taneously observing regulation principles / restrictions and 2) better market responsiveness via stronger ability to reallocate financial re sources dynamically It is illustrated how IT works as an enabler of fl exible and adaptive organizational designs and innovative control syst ems.