Asset managers have extended a cautious welcome to news that Royal Bank of Scotland and Lloyds Banking Group are considering ways to raise capital. Fund managers told Financial News that the banks would benefit from new rights issues, but they are holding back from declaring support until they see the terms on such raisings.

Guy de Blonay, who manages a £300m (€328m) financials fund at Henderson Global Investors, said investors' current attitude reflects the recovery in equities valuations, including the banks' share prices, since March.