So far 2016 has not been kind to investors in the world's biggest banks, which have borne the brunt of the brutal   January sell-off of global shares. 
Whether it is heightened fears about the sector's true exposure to commodities, or persistently low or even negative interest rates as the global economy stutters, investors are yanking their money out of the big banks. Australia's banking index is down about 12.34 per cent after a tough Wednesday session, in which the big four banks fell 2.8 to 5.5 per cent. .
Despite those falls, Australian banking stocks are relative outperformers in 2016. The likes of JPMorgan, Citigroup, Barclays and Bank of America, which many investors had picked as better bets than the Australian banks, have fallen 13 to 20 per cent.
But the Australian banks were even more vulnerable to selling from global investors, CLSA banking analyst Brian Johnson said. In a note to clients he warned the Australian-dollar bank dividend carry was reversing, with foreign investors either selling or shorting bank stocks now.
A tide of money that has flown into international income funds, previously underweight in the sector, had been diverted into the Australian bank stocks because of their attractive yields. But the three-year run of buying was set to slow, he said.
Among the reasons he cited for the change in international sentiment are: fears about a China contagion; rising bank funding costs as credit markets soften; discounting by banks on home loans; and indications that Australian banks will need to raise even more capital in years ahead.
In fact, he pointed out that short-selling the Australian banks was rising: the 30 million shares loaned to short sellers of Commonwealth Bank is the highest level since   July 2012.
While income-oriented foreign investors have embraced the banks more recently, value-focused foreign funds have either avoided or shorted the banks on the premise they were vulnerable to a slowdown in China and an exposure to seemingly overvalued property prices.
Foreign banks look attractive now compared with their Australian peers. On a price-to-book ratio - the preferred measurement of value for bank stocks - CBA trades at 3.14 times, more than five times higher than the 0.62 times implied by Citigroup's share price.
But domestic investors have remained faithful. CLSA estimates $1 billion flows into Australian equities every week via superannuation contributions, ensuring there's a structural bid for Australian bank stocks.
And as Mr Johnson pointed out for those who don't believe dividend cuts and capital raisings are coming, the 6-plus per cent dividend yields might offer good value.
ANZ Banking Group was the banking stock most favoured by foreign investors at 25.9 per cent of the share register, compared with about 21 per cent for the other banks, CLSA said. Commonwealth Bank's share register, on the other hand, is dominated by retail investors, which has left "institutions structurally underweight" the bank.
That is consistent with analysis by The Australian Financial Review from 12 months ago that showed the top 10 active Australian equity funds had an average of 3 per cent less in CBA shares, compared with the S&P/ASX 200 Index.
International investors were highly sensitive to the currency, Mr Johnson said.