Despite the pressures on the European banking sector, the industry is likely to continue consolidating, Credit Suisse Group AG CEO Thomas Gottstein (pictured) stated during a conference on Tuesday.

The executive said he expects the sector to strengthen through both cross-border as well as in-market deals.

However, he warned that lenders are burdened by many countries that are "over-banked," as well as by negative interest rates which "put further pressure on net interest margins for all players within the Swiss franc zone and the eurozone and other European countries."