While the first days of the 2008 financial crisis are long gone, the large level of bad loans continues to be a drag on the European banking system and could spark new crises in the coming year, an analyst told CNBC.



Investors are currently focusing on the recapitalization process at the oldest lender in the world, the Italian Monte dei Paschi, which is set to become a template for how the rest of the Italian banking system can be overhauled. But, given that Italy is not the only EU country with high bad loans in banks' balance sheets, analysts are worried that further banking crisis will emerge in Europe.

"In the States, the economy hit the wall, people wrote off all the bad loans, they got on with it and the banks recapitalized and move forward," Howard Goldring, managing director at Delmore Asset Management told CNBC on Monday.

"This process in Europe is taking years because of refusal to face reality and I am just worried that there's going to be more of this over the next year or two, not just in Italy but in other places across Europe."

According to KPMG, the European banking sector has about 1.1 trillion euros ($1.2 trillion) in non-performing loans, almost three times as much compared to the U.S.