Financial innovation has rapidly grown due to economic globalization, linking financial institutions and markets closely. This has impacted central banks, commercial banks, and financial regulations, reducing the financial system's ability to handle local risks. The overall stability of the financial system is at risk due to these developments. Financial innovation has also led to increased international financial transactions, market internationalization, and cross-border capital flows, increasing the vulnerability of local financial risks to become comprehensive financial risks. This trend affects the stability of the financial system.