Lack of cross-border mergers lays bare Europe still needs more integration: Bank of Spain

MADRID (Reuters) - The lack of cross border mergers in the financial sector in Europe is an evidence that the continent still has a long way to go in terms of market integration and diversification, deputy governor of the Bank of Spain said on Wednesday.

"In my view, the lack of cross-border mergers can be partially explained by the over-capacity of the financial sector in Europe," Margarita Delgado said during an event on the European Banking union in Madrid.

Despite calls from some European regulators for more market integration and to complete the banking union, one key missing part is the creation of a common deposit insurance scheme.

(Reporting By Jesús Aguado; editing by Jose Elías Rodríguez)