Financial innovation has often had its roots in advances in the processing power of IT systems and lower costs for data storage (Beck, Chen, Lin and Song 2016). This has reduced transaction costs and information asymmetries, thus affecting a key function of banks in the financial system (Mishkin and Strahan 1999; Leland and Pyle 1977).
Another possibility being considered is a regulator’s ‘black list’, which would be a special page on the  2  BIS Review 16/2001  regulator’s website listing financial services providers that are operating without a license and therefore not trustworthy. So we work together with fellow regulators, the police and investigation services.