With the market still down significantly this year, there are plenty of stocks trading at a discount. One area that has seemingly been overlooked is the European banking sector, which has long struggled but now has several companies trading at huge bargains, despite having significantly improved their operations.

These stocks do not come without risk, as Europe faces an energy crisis and high inflation, creating further potential macro issues down the line, which can certainly impact banks negatively. There's also the chance of a value trap, as investors have seemingly turned their back on a lot of these stocks. 

But over the long term, water tends to find its level. If these banks keep trending in the direction that they are, I think there is good money to be made. Here are three European bank stocks that investors can buy for less than 50 cents on the dollar.

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Source Fool.com