The health of European banks have become the latest source of concern in the markets. But is there real reason for investors to be worried? Saxo Bank's Mads Koefoed says there may not be and here's why.

It is been a rough year for European banking stocks with shares in Germany's Deutsche Bank down over 40%. Declining earnings and capital strength are among the chief concerns, but according to Koefoed they seem overblown.

While new banking regulation is hurting the profitability of the banking sector and the market is right to adjust valutions on banking stock, Koefoed sees no real reason to be concerned about more systemic risks. In fact, he believes there could be opportunities in the banking sector and is positive on US banks.