Bank executives in Europe are yearning for mergers and acquisitions as deals are expected to expand in the US

European banking leaders hope to continue making deals on the continent as U.S. mergers and acquisitions are expected to increase under the new Trump administration.

Steven van Rijswijk, CEO INGthe largest bank in the Netherlands, stated that there are too many banks in Europe, which deepens the inefficiency of the European Union's financial system.

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

His comments come amid speculation about whether UniCreditthe sixth largest bank in Europe in terms of market capitalization will obtain approval for the merger Commerzbankthe second largest bank in Germany.

The Italian lender holds shares in the German bank through a proxy and is currently waiting for the consent of the European Central Bank to increase its share. If approved, it will be one of the largest cross-border transactions in European banking in years, but it has happened political winds.

CEOs hit out at regulators in the European Union over what they see as over-regulation at a time of heightened global competition. Many people fear that the United States will pave the way for its companies around the world by lowering barriers while the European Union introduces even more rules.

ING Bank's CEO also suggested that piecemeal regulation across Europe is hindering a more efficient banking system, in stark contrast to the United States.

“In Europe too, we see different regulations on different elements,” van Rijswijk said. “When it comes to anti-money laundering, GDPR and cybersecurity, there are differences across Europe that make it difficult for banks to effectively do business with our customers.”

“I believe that consolidation, also due to the division of regulations, will largely take place in individual markets,” he added.

However, Sergio Ermotti, the chief executive of the Swiss bank UBSwhich runs a large wealth management division in the United States, suggested that while U.S. authorities are unlikely to relax rules for large banks, the policy stance taken by regulators under the new Trump administration is likely to result in a revival in dealmaking among several small and regional banks.

“Consolidation will probably be allowed primarily in the US, among second-tier banks. Rationalizing a bit of this aspect. And that in turn will create opportunities,” Ermotti told CNBC in Davos.

“I don't think we'll see too much deregulation,” added Ermotti, who is leading UBS through the process forced takeover of rival Credit Suisse. But he said he expected a “rationalization” of existing regulations instead.

José Viñals, chairman Standard charterhe said he hoped for “well-thought-out” deregulation in Europe AND watering down the rules for the sake of it.

“I think that well-thought-out deregulation could also be good in other parts of the world, for example. I'm thinking about the European Union,” Vinals told CNBC. StateChart is a bank listed on the London Stock Exchange, but derives most of its profits from Asia.

“This will be something positive for economic growth. However, we know that such a policy is difficult to implement, but not impossible,” he added.

So does 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 give powers to a pan-European regulatory agency.

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

Europe must decide “which elements of society and communities must be regulated by a national regulator and which elements must 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.

“We have national and regional regulations. This has to change,” she said. “It's very easy to solve, it's just a matter of will.”