BNP Paribas warns of ‘too many’ European Banks amid UniCredit's pursuit of Commerzbank

Frankfurt: France's BNP Paribas has called for consolidation in the European banking sector, arguing that the region's fragmented banking landscape is hindering its ability to compete with global rivals from the U.S. and Asia. Speaking at the Bank of America Financials CEO Conference, BNP Paribas Chief Financial Officer Lars Machenil stressed the need for more homegrown banking champions.

Machenil's remarks come as Italy's UniCredit intensifies its bid to take over Germany’s Commerzbank. Earlier this month, UniCredit increased its stake in Commerzbank to 9%, with plans to boost it to 21%, signaling its ambition to become the largest investor in Germany's second-largest lender. This potential multibillion-euro merger has reportedly caught German authorities off guard.

German Chancellor Olaf Scholz, a proponent of greater European banking integration, has expressed firm opposition to UniCredit's apparent takeover attempt, reportedly calling the move “unfriendly” and “hostile.” Some critics have accused Germany of supporting European banking consolidation only on its own terms.
Machenil noted that the large number of banks in Europe weakens the region's competitive position, stating, "If I would ask you how many banks are there in Europe, the right answer would be too many." He added that consolidation is necessary to create stronger, more competitive European banks.

Spain’s BBVA is also actively pursuing domestic consolidation with its ongoing interest in Banco Sabadell, reflecting a broader trend in European banking towards mergers and acquisitions.