European banking leaders want more deal activity on the continent as U.S. M&A activity is expected to increase under the new Trump administration.

Steven van Rijswijk, CEO INGABN Amro, the Netherlands’ largest bank, said the excessive number of European banks was exacerbating the inefficiencies of the EU financial system.

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

His comments come amid speculation about whether UniCredit BankEurope's sixth-largest bank by market capitalization will be allowed to merge with Commerzbank, Germany's second-largest lender.

The Italian bank holds a stake in the German lender through a nominee and is awaiting approval from the European Central Bank to increase its stake. If approved, it would be one of the biggest cross-border deals for European banks in years, but it has encountered political resistance.

Chief executives have lashed out at EU regulators for what they say is excessive regulation at a time of intensifying global competition. Many worry that the United States will pave the way for its companies to go global by lowering barriers, while the European Union instills more rules.

The ING CEO also said fragmented laws across Europe were hindering the development of a more efficient banking system, in stark contrast to the United States.

“We also see different regulations in Europe for different elements,” van Rijswijk said. “There are differences in Europe when it comes to anti-money laundering, GDPR or cyber, which hinder the efficient way banks can do business with their customers.”

“I believe that consolidation will primarily occur within individual markets due to regulatory compartmentalization,” he added.

However, UBS CEO Sergio Ermotti UBSThe company, which operates a large wealth management unit in the United States, said that while U.S. authorities are unlikely to loosen rules for large banks, the policy stance taken by regulators under the new Trump administration could lead to several smaller banks Transactions between. Regional Bank.

"The first thing that will be allowed is probably the consolidation between secondary banks in the United States. Some rationalization in that regard. 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 led UBS's forced takeover of rival Credit Suisse. But he said he did want existing regulations to be "rationalized."

José Viñals, Chairman Standard Chartered Banksaid he hoped Europe would adopt "thoughtful" deregulation rather than one Watering down the rules for the sake of it.

"I think some thoughtful deregulation could be good for other parts of the world as well. I'm thinking of the European Union," Vinals told CNBC. Standard Chartered Bank is a London-listed bank but generates most of its profits in Asia.

"This will have a positive impact on economic growth. But we know these policies are difficult to implement, but not impossible," he added.

Likewise, CEO Adena Friedman Nasdaqsaid Europe is unlikely to see the benefits of a Capital Markets Union - a unified capital regulatory framework like the US - unless smaller regulators cede power to a pan-European regulator.

Friedman told a live CNBC audience in Davos that there are "layers of regulation" in Europe.

The Nasdaq boss said Europe must decide "which elements of society and communities must be regulated by national regulators and which elements need to be regulated by regional regulators". In addition to New York, the company operates stock exchanges in Sweden, Denmark, Finland and Iceland.

"There is national regulation and regional regulation. That has to change," she said. "It's very solvable, it's just a matter of will."