Fund managers have identified a buying opportunity for Lloyds Banking Group shares, following Chancellor George Osborne's announcement the government will start selling off its 39% stake in the bank.
"While Lloyds has made significant and encouraging progress, this needs to be weighed against the quality companies that can be found in other sectors and industries across the UK market."
He prefers Standard Chartered and HSBC due to their financial strength and exposure to emerging markets and has 7.5% in the two stocks in the Aberdeen UK Equity Income fund.
The other two managers, however, are less positive on banks with emerging market exposure, voicing concerns about their growth prospects and cost of operating in these regions.
De Blonay said: "I do not hold Standard Chartered because one of the main criteria for the fund is a focus on profitability and not just revenue growth. It has been chasing revenue in markets that are too expensive.
"Having said that, it has re-rated quite aggressively over the last six months, so it might be worth revisiting as it now provides growth at a cheaper price."
Beesley does not intend to gain exposure to emerging markets in his portfolio and does not own shares in HSBC or Standard Chartered.
"We have a lot of concerns about emerging markets because of the stress on the economies, the competitive devaluation of the yen and QE issues, so we would worry about exposure to these regions.
"We want to hold banks that have room to grow and have a dominant position in their local market, allowing the returns to flow back to investors in the form of dividends."
