.A register the exterior of a BNP Paribas SA financial institution branch in Paris, France, on Friday, Aug. 2, 2024. Bloomberg|Bloomberg|Getty ImagesFrance's BNP Paribas on Thursday pointed out there are simply way too many European lending institutions for the location to be capable to compete with opponents from the U.S. and Asia, requiring the creation of additional organic heavyweight banking champions.Speaking to CNBC's Charlotte nc Reed at the Bank of America Financials Chief Executive Officer Association, BNP Paribas Chief Financial Officer Lars Machenil voiced his help for higher combination in Europe's banking sector.His remarks come as Italy's UniCredit ups the stake on its evident takeover try of Germany's Commerzbank, while Spain's BBVAu00c2 remains to proactively seek its own domestic opponent, u00c2 Banco Sabadell." If I will inquire you, how many banking companies exist in Europe, your right solution would certainly be actually too many," Machenil mentioned." If our experts are actually quite broken in task, for that reason the competitors is actually not the same factor as what you may observe in other locations. Thus ... you basically need to obtain that consolidation and also get that going," he added.Milan-based UniCredit has actually ratcheted up the stress on Frankfurt-based Commerzbank in recent weeks as it looks for to become the largest financier in Germany's second-largest creditor with a 21% stake.UniCredit, which took a 9% stakeu00c2 in Commerzbank previously this month, shows up to have caught German authorizations off-guard along with the potential multibillion-euro merger.German Chancellor Olaf Scholz, that has actually previously asked for better integration in Europe's financial market, is actually securely resisted to the obvious requisition try. Scholz has actually reportedly described UniCredit's technique as an "antagonistic" as well as "unfavorable" attack.Germany's position on UniCredit's swoop has caused some to accuse Berlin of favoring European financial integration simply on its own terms.Domestic consolidationBNP Paribas's Machenil stated that while residential consolidation would aid to support unpredictability in Europe's financial setting, cross-border integration was actually "still a little bit further away," mentioning contrasting systems and also products.Asked whether this indicated he thought cross-border financial mergers in Europe appeared to something of a bizarre reality, Machenil replied: "It's 2 different points."" I presume the ones which are in a country, economically, they make sense, and they should, fiscally, occur," he proceeded. "When you check out truly ratty perimeter. So, a banking company that is located in one country merely and also based in yet another country simply, that economically does not make good sense due to the fact that there are actually no synergies." Earlier in the year, Spanish banking company BBVA shocked marketsu00c2 when it launched an all-share requisition offer for residential rivalrous Banco Sabadell.The head of Banco Sabadell claimed earlier this month that it is strongly unexpected BBVA will be successful with its own multi-billion-euro aggressive offer, Reuters reported.u00c2 As well as yet, BBVA CEO Onur Genu00c3 u00a7 said to CNBC on Wednesday that the requisition was "relocating depending on to planning." Spanish authorities, which possess the energy to block any sort of merger or even accomplishment of a banking company, have articulated their opponent to BBVA's dangerous takeover quote, citing possibly damaging effects on the region's financial unit.