Uncertainty over whether Canada’s banks will be allowed to merge or not is hurting the industry according to Royal Bank CEO Gordon Nixon.

“This is an issue everybody’s growing tired of; it would certainly be nice to bring clarity to it,” Nixon said Wednesday during a presentation of bank CEOs to a financial conference in Montreal.

The federal government has promised to release a policy statement by this June to clarify the regulations around eventual bank mergers.

Nixon said the banks are continuing to make investments and small acquisitions, while waiting for new merger policies.

However, he added that he would be reluctant to pursue larger acquisitions until Ottawa clarifies its position.

John Hunkin, CEO of CIBC, said his bank is also looking for opportunities to grow but will be cautious about taking on any larger acquisitions, in Canada or elsewhere.

“We want to be strong at the downturn of the next cycle, where historically we’ve been weak, in a position to take advantage of other players that might be weak,” Hunkin said.

Scotiabank CEO Richard Waugh said he too is waiting impatiently for the federal rules governing mergers.

“We will continue to look at this option (mergers) if it will create value and if we can identify a suitable partner,” said Waugh. Meanwhile, his bank is looking for acquisitions in Asia.