Chris McGrath/Getty Images Investors worry European banks are at risk from their loans to Turkish firmsAmid fears that the Turkish lira’s swoon will result in further pain outside the country’s borders, one analyst says investors can take the European banking sector off the list of hotzones at risk of contagion from the emerging-markets crisis. Despite the widespread selling in European bank stocks seen earlier this week, David Carruthers, head of research at Credit Benchmark, says the balance sheets of the European financial sector are in better shape than market participants give credit, and could withstand souring loans from Turkey.“Everything I’ve looked at, the concerns [over European banks] are really overdone. If you look at the credit quality of European banks, it’s been pretty stable,” said Carruthers. Market participants worry that as the Turkish lira USDTRY, -4.1168% slides the country’s corporations which had borrowed in euros USDEUR, +0.1475% and dollars DXY, +0.19% will struggle to service its foreign-currency denominated debts in weakening local currencies. This year, the lira has lost more than 70% of its value, while bank stocks in the Stoxx Europe 600 index SXXP, -0.02% have tumbled 11%, according to FactSet data.via