The eurozone's top official cautioned against going into crisis mode over the market turbulence that has in particular hit European bank stocks in recent weeks.

Jeroen Dijsselbloem told the economic committee of the European Parliament on Thursday that "we are moving economically out of the crisis. Europe is doing relatively well compared with many other regions." He said "the crisis is still in our heads."

He countered some assertions that the banks are in bad shape, noting that some individual lenders "have legacy issues" along with large portfolios of non-performing loans that reflect the tough conditions in some economies.

Banks in Italy in particular are burdened with a big amount of soured loans.