'Boring banks' a safe haven in world of possible Greek default

When fears of a Greek default are mounting, stock markets are jittery at multiyear highs, and the world's biggest economy is preparing to raise interest rates, the idea of taking refuge in bank stocks might appear to be a hard sell.

Yet some investors and brokers say the sector is cheap, has been scrubbed cleaner post-crisis and may be able to pass on higher rate costs to clients in an improving economy.

"With some of the classic safe havens like precious metals and less risky stocks providing little protection, we believe investors should consider some less obvious places," BlackRock global chief investment strategist Russ Koesterich told clients. "One is the financial sector, with banks a potential beneficiary of higher rates."

It would not be the first time investors have picked up banks again since the financial crisis, though eye-popping fines have left some with burnt fingers.

But Citi research suggests that European banks' annual litigation provisions are expected to fall by more than half this year.

The banking sector is still cheap relative to others: global banks trade on a price-earnings ratio of about 12 and a price-to-book ratio of about 1, one of the lowest-rated sectors.