UK fund managers have offered a sanguine appraisal of the country’s banking sector in the wake of regulators’ estimations of a £27bn-plus capital shortfall at five major banks. But the Royal Bank of Scotland remains a worry.

George Godber, manager of the CF Miton UK Value Opportunities fund, said: "We all love to attack the banks, but the regulatory authorities have done a very good job in the round. Our banks now look so much better than the eurozone's. Outside Switzerland, the Europeans have not really done any rights issues or recapitalisations."