An influential lawmaker in the European Union has urged regulators to prevent panic from spreading following the collapse of Silicon Valley Bank, part of SVB Financial Group (NASDAQ:SIVB).

Markus Ferber, a representative of the leading center-right party in the European Parliament, called on EU bank supervisors to assess the vulnerability of European lenders to interest rate shocks similar to those that caused the Californian bank to fall on Friday, Coindesk reported.

Ferber emphasized the importance of containing panic, which he described as infectious and not to be allowed to spread.

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Ferber also raised concerns about how sovereign bonds are treated under bank-capital rules, a recurring theme among German politicians who argue the current regulations underestimate the risk posed by indebted governments such as Italy and Greece.

Although EU policymakers have downplayed fears of contagion, market jitters have spread throughout the region.

The Stoxx 600 Europe Bank Index, which includes lenders based outside the Eurozone, experienced a 6.3% decline, the largest one-day drop in more than a year, according to Reuters.

French Finance Minister Bruno Le Maire told reporters that banks in the country were not exposed and had different business models than Silicon Valley Bank.

To prevent further financial instability risks, the U.S. Federal Deposit Insurance Corporation (FDIC) announced a transfer of Silicon Valley Bank's assets to a new bridge entity, while its U.K. subsidiary was purchased by HSBC for one British pound ($1.21).

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