.A join the outside of a BNP Paribas SA financial institution division in Paris, France, on Friday, Aug. 2, 2024. Bloomberg|Bloomberg|Getty ImagesFrance's BNP Paribas on Thursday said there are merely excessive European loan providers for the region to become able to take on rivals from the USA and also Asia, calling for the creation of more native big-time financial champions.Speaking to CNBC's Charlotte Reed at the Bank of United States Financials Chief Executive Officer Event, BNP Paribas Main Financial Officer Lars Machenil voiced his support for better combination in Europe's banking sector.His remarks come as Italy's UniCredit ups the ante on its noticeable requisition attempt of Germany's Commerzbank, while Spain's BBVAu00c2 remains to actively pursue its residential competitor, u00c2 Banco Sabadell." If I will ask you, the amount of banking companies are there in Europe, your right solution would certainly be way too many," Machenil mentioned." If our experts are actually quite fragmented in activity, as a result the competition is actually certainly not the exact same trait as what you might see in other locations. So ... you essentially must receive that loan consolidation and also acquire that going," he added.Milan-based UniCredit has actually ratcheted up the tension on Frankfurt-based Commerzbank in latest weeks as it seeks to become the greatest capitalist in Germany's second-largest financial institution along with a 21% stake.UniCredit, which took a 9% stakeu00c2 in Commerzbank previously this month, shows up to have actually caught German authorizations off guard along with the possible multibillion-euro merger.German Chancellor Olaf Scholz, that has formerly called for better combination in Europe's financial sector, is actually securely opposed to the obvious takeover effort. Scholz has actually apparently defined UniCredit's step as an "unfriendly" as well as "hostile" attack.Germany's posture on UniCredit's swoop has actually prompted some to implicate Berlin of choosing European banking combination just on its own terms.Domestic consolidationBNP Paribas's Machenil said that while residential unification will help to maintain uncertainty in Europe's banking environment, cross-border combination was actually "still a bit more away," presenting differing systems and also products.Asked whether this indicated he strongly believed cross-border banking mergers in Europe showed up to one thing of an unrealistic truth, Machenil replied: "It's 2 different traits."" I think the ones which remain in a nation, economically, they make good sense, as well as they should, economically, occur," he carried on. "When you check out really ratty perimeter. So, a banking company that is located in one nation only as well as based in an additional country merely, that fiscally doesn't make good sense since there are no unities." Earlier in the year, Spanish financial institution BBVA stunned marketsu00c2 when it released an all-share takeover offer for residential competing Banco Sabadell.The scalp of Banco Sabadell stated previously this month that it is actually extremely improbable BBVA is going to do well with its multi-billion-euro hostile proposal, Reuters reported.u00c2 And also yet, BBVA chief executive officer Onur Genu00c3 u00a7 informed CNBC on Wednesday that the takeover was actually "relocating according to strategy." Spanish authorities, which possess the power to block out any sort of merger or achievement of a banking company, have voiced their opponent to BBVA's dangerous takeover quote, presenting likely hazardous results on the area's monetary body.