As investor concerns over the health of the US banking sector continue to grow, US bank stocks drove US markets lower on Friday.

The Dow Jones Industrial Average fell over 400 points, or 1.3%, before regaining some ground to close down 384.57, for a loss of 1.19%. The S&P 500 dropped 1.10%, and the tech-heavy Nasdaq Composite slid 0.74%.

Financials drove the decline, as First Republic Bank stock plunged 20% early in trading, following word the bank had suspended its dividend payment, and analysts were predicting it faced a “dire” outlook. Several major US banks, including JP Morgan, Chase, and Morgan Stanley injected a $30 billion rescue package into the troubled regional lender on Thursday, however analysts still believed the bank faced an uncertain future.

News worsened as it was reported that SVB Financial Group announced it was filing for Chapter 11 bankruptcy protection in New York as it continues to seek buyers for its assets. The word came just days after a former unit of it, Silicon Valley Bank, was seized by regulators amid a run on its deposits.

Thomas Hayes, the chairman of Great Hill Capital, said in an interview with Reuters, “Deposits have fled from regional banks like First Republic into the big banks who are now bailing them out by putting the deposits back in. But it doesn’t solve the problem.”

He added, “Until you stop the deposit flight from regional banks into the systemically important banks that are too big to fail, it doesn’t matter how much money you pour into the bucket.”

As news broke of the First Republic rescue, the European Central Bank (ECB) announced it was implementing a 50 basis point rate hike as it continues to seek to rein in the continent’s soaring inflation, despite growing concerns over the health of the global banking system.

Next week the Federal Reserve will issue its decision on interest rates, an announcement sure to be closely watched by investors.