Shares of many smaller banks in the United States have plummeted, as investors fear that the banking crisis that has seized global markets is far from over.

The drops come a day after the failure of First Republic, which was seized by regulators and sold after consumers withdrew more than $100 billion.

It was the country’s second-largest bank failure in history, and the third since March.

Shareholders have been wiped out, and they are now looking for dangers at other institutions.

PacWest Bancorp, situated in California, saw its stock plummet 28% after being scrutinized for its financing to venture-backed enterprises.

Western Alliance, based in Arizona, had its stock decline 15%.

The upheaval comes as the financial industry adjusts to a steep hike in interest rates.

The US Federal Reserve hiked its benchmark rate from near zero in March to more than 4.75% today. This week, it is expected to announce another 0.25% increase.

The moves are having an effect on the US economy, which may affect banks as businesses and households struggle to make loan payments.

Many analysts are concerned about risks to banks lurking in the commercial property sector, which has been hit by a drop in demand for office space as remote work has expanded.

Interest rate increases have put certain banks in a dilemma, as higher rates have reduced the market value of some obligations made while borrowing costs were lower.

The panic triggered by the sudden collapse of Silicon Valley Bank – then the US’s 16th largest lender – prompted global sell-offs of bank shares, prompting many US bank clients to move their money to institutions deemed safer.

Larger banks emerged as winners, while regional banks were put under pressure.

Fears claimed Signature Bank and, eventually, First Republic, which could not withstand the loss of funds.