Bank plunge could spell end of an era for ASX investors

Mid-cap companies offer better opportunities for investors than banks, a global asset manager says. (Susie Dodds/AAP PHOTOS)

The dominance of listed bank stocks could be coming to an end, and investors should look elsewhere for better returns following a dive in the value of Australia's biggest institution, a global asset manager warns.

The economic conditions that made the big banks the default trade for a generation of investors - disinflation, falling interest rates, unbroken housing credit growth, and benign provisioning - have reversed, according to VanEck.