The following video is part of our "Motley Fool Conversations" series, in which senior analyst Anand Chokkavelu, CFA, discusses topics around the investing world.

Commenting on the state of banking recently, Warren Buffett said: "The American banking system is in fine shape. The European system was gasping for air a few months back." With the European Central Bank infusing more than $1 trillion into European banks with three-year loans at 1% interest rates, it's easy to see how the European banks are in more dire need these days. Anand agrees with Buffett and explains why he'd require a large margin of safety from Euro banks like National Bank of Greece, Banco Santander, and BBVA.

The financial heavies are getting a lot of press these days. And much of it is negative. But there's one small bank that's flying under the radar. It has some of the best operational numbers you'll ever see. The Motley Fool featured it in its brand-new free report: "The Stocks Only the Smartest Investors Are Buying." We invite you to download a free copy. To find out the name of the bank Buffett would probably be interested in if he could still invest in small banks, just click here.

At the time this article was published Anand Chokkavelu and The Motley Fool have no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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