European banks desperately need a fully formed banking union to compete with the world's most valuable financial institutions, according to the chief executive of Germany's biggest lender.
"We have to accelerate the banking union and revitalize the concept of a capital markets union in Europe," Christian Sewing, CEO of Deutsche Bank, said at Frankfurt's European Banking Congress on Friday.
A Europe-wide banking union was initiated in 2012 as a way to prevent further financial shocks and to separate sovereigns from their banking systems. But it is still not entirely complete, with a European deposit insurance scheme yet to be finalized.
"To create the banks which Europe needs we have to establish a larger market and actually a single market. This is necessary to facilitate both organic growth and consolidation among European banks, both of which are needed in the long run," Sewing said.
"If we consolidate, if we get digitization right and, yes, I can't miss it dear President Draghi, if we get a little support from the European Central Bank (ECB) with a normalized interest rate environment then European banks will have it easier again to grow and also compete globally," he added.