Fear is gripping Wall Street about what’s next to topple following the second- and third-largest bank failures in US history in recent days.

Stocks are falling early Monday and Treasury yields are falling sharply as investors scramble to find someplace safe to park their money.

The S&P 500 was 1% lower, with the heaviest losses coming from banks.

Investors are worried that a persistent rise in interest rates meant to get inflation under control has hit a tipping point and are cracking the banking system and broader economy.

US regulators announced a plan late Sunday meant to shore up the banking industry.

Markets in Asia ended mixed after assurances by US officials that they were taking steps to protect depositors at Silicon Valley Bank.

But the role that recently sharply increased interest rates by the US Federal Reserve and other central banks played in the bank’s collapse caused jitters over the possibility that other financial institutions might be exposed to the same kind of risks. SVB’s holdings of government-backed bonds had fallen in value due to rising interest rates.

Analysts at ING bank said most banks don’t hold the high percentage of government bonds that SVB did but added “that does not mean there aren’t more SVBs out there.”

“So far, it seems that the potential problem banks are few, and most importantly do not extend to the so-called systemically important banks,” the ING analyst said.

France’s CAC 40 lost 2.2%, Germany’s DAX dropped 2.3% and Britain’s FTSE 100 dove slumped 1.9% at midday.

Germany’s financial regulator, BaFin, on Monday prohibited asset disposals and payments by Silicon Valley Bank’s German branch and imposed a moratorium, effectively shutting it for dealings with customers.

In a statement, BaFin stressed that the German branch does not constitute a threat to financial stability. BaFin said SVB’s German branch was responsible for lending but did not run a deposit business in the country, so deposit insurance was not an issue.

In Asia, Japan’s benchmark Nikkei 225 slipped 1.1% to finish at 27,832.96. Australia’s S&P/ASX 200 lost 0.5% to 7,108.80. South Korea’s Kospi recognized earlier losses to gain 0.7% to 2,410.60.

Hong Kong’s Hang Seng jumped 2% to 19,695.97. The Shanghai Composite rose 1.2% to 3,268.70, as Chinese shares tracked earlier gains in US futures that later were erased.

Before trading began in Asia, the US Treasury Department, Federal Reserve and Federal Deposit Insurance Corp. said Sunday that all Silicon Valley Bank clients will be protected and have access to their funds and announced steps designed to protect the bank’s customers and prevent more bank runs.

Regulators on Friday closed Silicon Valley Bank as investors withdrew billions of dollars from the bank in a matter of hours, marking the second-largest US bank failure behind the 2008 failure of Washington Mutual. They also announced Sunday that New York-based Signature Bank was being seized after it became the third-largest bank to fail in US history.

Following two bank failures, worries about financial stability and liquidity concerns were dominating the market landscape, said Stephen Innes, managing partner at SPI Asset Management in Hong Kong.

“With the market likely headed for a more turbulent period with US inflation on a collision course with the Bank’s ‘theater of tragedy,’ now is probably not the best time for investor euphoria,” Innes said.

But the sense that US authorities were taking steps to limit “the contagion effect” helped calm the situation somewhat, said Venkateswaran Lavanya at Mizuho Bank.

In Tokyo trading, banking issues were sold, with MUFG Bank falling 3.5%, echoing such falls in the sector on Wall Street. Shares in Mitsui Sumitomo Financial Group dipped 4%.

Worries have grown that interest rates are set to go higher than expected after the Fed said it could accelerate the size of its rate hikes. The US central bank is focusing on wage growth in particular in its fight against inflation. It worries too-high gains could cause a vicious cycle that worsens inflation.

Traders now largely expect the Fed to stick with a modest quarter-point hike. Last month, the Fed slowed to that pace after earlier hiking by half a point and three-quarters of a point.