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Increasing geopolitical volatility a worrying prospect: Nordea CEO

Brexit, this year's round of elections in Europe and the uncertainty surrounding a Donald Trump presidency are all causes for concern over the year ahead, according to the chief executive of Scandinavia's largest bank.

"I do (worry), I mean I think we also have to remember that we have actually lived in this low growth, low rate environment with geopolitical volatility for already some time and we will probably see more of it," Casper von Koskull, chief executive of Nordea Bank AB told CNBC in Davos, Switzerland on Friday.

The political calendar year in 2017 has the potential to become a significant headwind for European lenders. Donald Trump is poised to become U.S. President on Friday with elections in the Netherlands, France, Germany and Italy all scheduled over the coming months.

"I'm cautiously optimistic but at the same time... realistic that we have events and we need to be able to react to those events," he added.

JESSICA GOW | AFP | Getty Images

Nordea Bank chief executive admitted that lenders do need to address regulatory concerns however urged regulators to adopt a more "evidence-based" and correctly calibrated process.

"We need to have the trust of the broader society hence capital is important but capital is not everything. Trust is not only capital and hence I think we have come to the point where we need to look at other things as well," von Koskull told CNBC.