MILAN (Reuters) - There is room for consolidation in the banking sector both in Italy and in Europe, UBS (>> UBS Group) Chief Executive Sergio Ermotti said on Tuesday, adding political and regulatory authorities would support the process.

"Political and regulatory willingness (to allow banking mergers) are coming," Ermotti told a banking conference in Milan organised by Bloomberg.

Attending the same event, Mediobanca (>> Mediobanca) CEO Alberto Nagel said he saw room for consolidation "not now, but in 18 months" among Tier 2 banks, while Societe Generale (>> Société Générale) Chairman Lorenzo Bini Smaghi said banking consolidation in Italy "had to happen" because the market there was too fragmented.

(Reporting by Silvia Aloisi; writing by Francesca Landini)

Stocks treated in this article : Société Générale, Mediobanca, UBS Group