StanChart chairman calls for further consolidation in the European banking sector

Standard Chartered chairman Jose Vinals' comments come at a time when the European banking sector is struggling to remain profitable. On Monday, Deutsche Bank kickstarted a massive global restructuring program which will see 18,000 jobs cut by 2022 and the closure of its equities sales and trading business.

Greater consolidation is needed across the continental European banking sector if it is to thrive again after the financial crisis, according toSpeaking to CNBC's Hadley Gamble at the Europlace Financial Forum in Paris, Vinals suggested that in light of "tremendous restructuring" in many international and domestic European banks since the financial crisis, there is "a way more to go.

"I think particularly that is the case in continental Europe, where there are very large banks that are now undertaking very major changes, but also there are many small institutions which give over-capacity to the continental European banking sector," he said. "This is something that will need to be sorted out over time, so that only the fittest institutions, those that have the capacity to earn money to cover the cost of capital, and therefore have sustainable business models, prevail. This is a process that could take quite some time."

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