Despite concerns about the safety of U.S. banks, they're the strongest they've been in decades, storied bank analyst Richard Bove told CNBC's Squawk Box.
"They do have the protections that basically other people seem to want them to have," said Bove, an equity analyst at Rafferty Capital Markets. "If you take a look at their capital as a percentage of assets, you have to go back to 1938 during the bank holiday to find banks in stronger condition."
In 1938, the U.S. Congress declared a federal holiday for November 11 to commemorate the close of World War I with a national peace holiday.
"If you take any ratio that you want to take concerning loans vs capital, loans versus liquidity, these companies are in much stronger condition than they've been in decades," Bove said.
Bove is famed for calling a housing bubble in 2005, before the onset of the mortgage crisis in 2007-2008, although he also issued a wrong-way buy call on the banking sector in 2008 in the aftermath of the collapse of Bear Stearns.
His current call on the health of banks comes even as he expects loan losses to rise.
"They (loan losses) have to go up. There's no way possible they're going to stay as low as they are," he said, noting that the third quarter of 2013 saw the lowest loan loss rate ever in recorded numbers as a percentage of loans.
"But having said they're going to go up, recognize that they're not going to get back to average. In other words, it's going to go up, it's going to impact the earnings of the banks in a negative fashion, but it's an absorbable increase."