France's biggest lender says there are 'too many' European banks as UniCredit moves on Commerzbank
cnbc.comFrance's BNP Paribas on Thursday said there are simply too many European lenders for the region to be able to compete with rivals from the U.S. and Asia, calling for the creation of more homegrown heavyweight banking champions.
Speaking to CNBC's Charlotte Reed at the Bank of America Financials CEO Conference, BNP Paribas Chief Financial Officer Lars Machenil voiced his support for greater integration in Europe's banking sector.
His comments come as Italy's UniCredit ups the ante on its apparent takeover attempt of Germany's Commerzbank, while Spain's BBVA continues to actively pursue its domestic rival, Banco Sabadell.
«If I would ask you, how many banks are there in Europe, your right answer would be too many,» Machenil said.
«If we are very fragmented in activity, therefore the competition is not the same thing as what you might see in other regions. So… you basically should get that consolidation and get that going,» he added.
Milan-based UniCredit has ratcheted up the pressure on Frankfurt-based Commerzbank in recent weeks as it seeks to become the biggest investor in Germany's second-largest lender with a 21% stake.
UniCredit, which took a 9% stake in Commerzbank earlier this month, appears to have caught German authorities off guard with the potential multibillion-euro merger.
German Chancellor Olaf Scholz, who has previously called for greater integration in Europe's banking sector, is firmly opposed to the apparent takeover attempt. Scholz has reportedly described UniCredit's move as an «unfriendly» and «hostile» attack.
Germany's position on UniCredit's swoop has prompted some to accuse Berlin of favoring European banking integration only on its own terms.
BNP Paribas's Machenil said that while domestic
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