Investors and economists are getting worried about more bank failures as interest rates stay high

• Fears of a potential banking crisis are on the rise as interest rates stay elevated.
• Interest rates are now at their highest levels since 2001 as the Fed keeps an eye on inflation.
• Markets have already seen 1 regional bank fail this year, according to FDIC data.

Fears of more trouble in the banking sector are on the rise as investors and economists worry that high interest are causing trouble for regional lenders. 

With interest rates at their highest levels since 2001, higher borrowing costs have put pressure on banks' balance sheets as borrowers struggle to pay debts or avoid the credit market altogether. According to Moody's Analytics chief economist Mark Zandi, the longer interest rates stay high, the more the Fed risks damaging the economy.