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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.