Bank Index Euro Stoxx lost 21% in comparison to peak level in January due to political situation in Italy and Spain, Bloomberg reports.

Political crisis in Italy was one of the latest shocks for the sector that is recovering from decade of concerns over loans, profitability and economic stability. It shall be noted that Europe banking sector growth from low levels in the beginning of 2009 was just 30%, while it was fivefold for US peers.

In this situation analytics advice to buy banks’ shares, since economy of the region will continue its recovery, and major crisis are not coming any time soon.

Banking stocks showed the highest growth in two months on Friday, when Italy’s populists parties formed a government. However, this could be a negative news, since plans of this new government threaten financial stability of the country and relations with EU.

Besides Italian banks, a lot of attention is paid to Deutsche Bank AG recently. The bank was included into the list of troubled banks in the US and subject to S&P rating cut.

However, experts think that risks for Italian banks and Deutsche Bank are temporary, and Europe’s banking system is stable enough to overcome such shocks.