European bank chiefs are longing for mergers and acquisitions as US jobs are expected to start growing

European banking executives are hoping for further deal-making activity on the continent as US mergers and acquisitions are expected to accelerate under the new Trump administration.

Steven van Rijswijk, CEO INGthe largest bank in the Netherlands, said that there are too many banks in Europe, which contributes to the inefficiency of the financial system of the European Union.

“I think there are too many banks in Europe for an efficient capital system,” he told CNBC at the World Economic Forum in Davos, Switzerland.

His comments come amid speculation over whether he will UniCreditthe sixth largest bank in Europe by market capitalization, will be allowed to merge with Commerzbankthe second largest bank in Germany.

The Italian lender holds a proxy stake in the German bank and is currently awaiting approval from the European Central Bank to increase its stake. If allowed, it would be one of the biggest cross-border deals in European banking for years, but it came up political winds.

CEOs attacked regulators in the European Union due to what they see as excessive regulation at a time of increased global competition. Many fear that the United States will pave the way for its companies to go global by lowering barriers, while the European Union will introduce even more rules.

ING Bank’s chief executive also suggested that fragmented laws across Europe were holding back a more efficient banking system, in stark contrast to the United States.

“And in Europe we see that there are different regulations on different elements,” said van Rijswijk. “When we talk about anti-money laundering, GDPR or cyber, there are differences in Europe that are distracting [the] an efficient way of doing business with our clients.”

“I believe that consolidation, also due to the fragmentation of regulation, will mostly take place within individual markets,” he added.

However, Sergio Ermotti, CEO of the Swiss bank UBSwhich runs a large asset management division in the United States, suggested that while US authorities are unlikely to relax rules for big banks, the policy stance of regulators under the new Trump administration is likely to lead to a revival of deal-making between a few small and regional banks.

“What will be allowed is probably consolidation in the US first of all, among the second-tier banks. Streamlining a little bit of that aspect. And that, in turn, will create opportunities,” Ermotti told CNBC in Davos.

“I don’t believe we’re going to see a lot of deregulation,” added Ermotti, who leads UBS through forced takeover of rival Credit Suisse. However, he said that instead he expects “rationalization” of the existing regulations.

José Viñals, Chairman Standard Charteredhe said he hoped for “thoughtful” deregulation in Europe, and he didn’t and watering down the rules for the sake of it.

“I think some thoughtful deregulation could also be good, for example, for other parts of the world. I’m thinking of the European Union,” Vinals told CNBC. StanChart is a bank listed on the London Stock Exchange, but derives most of its profits from Asia.

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

Similarly, Adena Friedman, CEO Nasdaqsaid Europe is unlikely to see the benefits of a capital markets union — a single regulatory framework for capital, like the United States — unless smaller regulators cede powers to a pan-European regulatory agency.

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

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

“You have national regulation and regional regulation. That has to change,” she said. – It’s very solvable, it’s just a matter of will.