Analysis on the Game between Financial Innovation and Financial Regulation Based on ICTs

One of the most imperative initiatives of promoting financial innovation, resisting financial risks, preventing financial crisis and strengthening financial regulation is to keep the balance of financial innovation and financial regulation which are based on ICTs. The authors analyze the ICTs-based mechanism of financial innovation and diffusion. The analysis of its impact on the reform of financial regulation is also discussed in the paper. According to China's actual conditions, the authors give some suggestions on financial regulation system which is based on modern information infrastructure.