UBS Group (NYSE:UBS) and Credit Suisse (NYSE:CS) are said to be in talks to potentially create one of Europe's largest banks, according to the Swiss finance blog Inside Paradeplatz and reported on by Bloomberg .

Inside Paradeplatz, according to Bloomberg, reported that UBS Chairman Axel Weber is leading the charge and has floated the idea by the Swiss Finance Minister. Inside Paradeplatz also reported that a deal wouldn't happen until early next year, according to Bloomberg.

Credit Suisse.

Image source: Credit Suisse.

UBS and Credit Suisse both operate heavily in the asset management, investment banking, and corporate and private banking segments, making them an ideal match that would likely allow the combined institution to realize some substantial cost savings.

The banking industry is set to resume consolidation following the coronavirus pandemic, as the adoption of digital trends, and low and even negative interest rates could accelerate merger and acquisition (M&A) activity.

In Europe, M&A has already begun, with CaixiaBank and Bankia contemplating a merger to create the largest bank in Spain with total assets of more than $650 billion euros.

Both stock prices of UBS and Credit Suisse initially got hammered at the beginning of the coronavirus pandemic but have since recovered.

Currently, UBS is trading at roughly 89% of tangible book value, while Credit Suisse is trading at roughly 60% of tangible book value, giving UBS a more valuable currency right now.