Reuters reports that Credit Suisse Chief Executive Thomas Gottstein expects more consolidation in Europe's banking sector, despite regulatory hurdles to cross-border deals.

“We have, on one side, negative interest rates, which will put further pressure on net interest margins for all players within the Swiss franc zone and the euro zone and other European countries. At the same time, many countries are over-banked,” Gottstein said.

“So, consolidation, I think will continue,” he said, adding he expected to see both cross-border as well as in-market deals.