European bank bosses are eager for mergers and acquisitions with deals expected to take off in the US

European bank leaders are hoping for more deal-making activity on the continent, as mergers and acquisitions in the United States are expected to increase under the new Trump administration.

Stephen van Rijswijk, CEO a jobThe largest bank in the Netherlands said that there are too many banks in Europe, which increases the inefficiency of the European Union's financial system.

“I think there are a lot of banks in Europe that cannot provide an efficient capital system,” he told CNBC at the World Economic Forum in Davos, Switzerland.

His comments come amid speculation about whether… unicreditEurope's sixth-largest bank by market value, will be allowed to merge with it Commerzbankthe second largest bank in Germany.

The Italian lender holds a stake in the German bank through an agent and is currently awaiting approval to increase its stake from the European Central Bank. If allowed, it would be one of the biggest cross-border deals in European banking for years, but it has had its share of problems Political headwinds.

CEOs have beaten regulators In the European Union over what they see as excessive regulation at a time of intensifying global competition. Many fear that the United States will pave the way for companies globally by lowering barriers, while the European Union instills more rules.

The ING CEO also noted that fragmented regulations across Europe hinder a more efficient banking system, in stark contrast to the United States.

“We also see in Europe that there are different regulations on different items,” Van Rijswijk said. “Talking about AML, GDPR or cyber, there are differences in Europe that hamper the effective way banks engage with our customers.”

“I think consolidation, also due to fragmentation of regulation, will largely happen within individual markets,” he added.

However, said Sergio Ermotti, CEO of the Swiss bank UPSAmazon, which runs a large wealth management division in the US, suggested that although US authorities are unlikely to ease rules for big banks, the policy stance taken by regulators under the new Trump administration is likely to revive deal-making between… Many small and medium banks. Regional banks.

“What will be allowed, perhaps, is a merger in the United States primarily, between second-tier banks. And a little bit of rationalization on that side. That in turn will create opportunities,” Ermotti told CNBC in Davos.

“I don't think we'll see a lot of deregulation,” added Ermotti, who leads UBS through its platform. Forced acquisition of competitor Credit Suisse. But he said he expected to “rationalize” the current regulation instead.

Jose Viñales, President Standard CharteredHe said he hoped “thoughtful” restrictions would be lifted in Europe instead A Relax the rules for this.

“I think some deliberate deregulation might also be good, for example, for other parts of the world. I'm thinking about the European Union,” Vinals told CNBC. Standard Chartered It is a bank listed in London but derives most of its profits from Asia.

He added, “This is something that will be positive for growth. But we know that these policies are difficult to implement, but they are not impossible.”

Likewise, Adina Friedman, CEO of… NasdaqHe said Europe was unlikely to see the benefits of a capital markets union — a unified capital regulatory framework, like the United States — unless smaller regulators cede their powers to a pan-European regulatory agency.

“There are layers and layers of regulation” in Europe, Friedman told a live CNBC audience in Davos.

Europe must decide “which elements of society and society should be regulated by a national regulator, and which elements should be regulated by a regional regulator,” the Nasdaq chief said. In addition to New York, the company operates stock exchanges in Sweden, Denmark, Finland and Iceland.

“You have a national organization and a regional organization,” she said. “This must change.” “It's very solvable, it's just a matter of will.”