Atlas Merchant Capital LLC. Chief Executive Officer Bob Diamond said the regulatory environment under President Donald Trump’s administration will support a wave of small-bank consolidation across the U.S.

“Over the next two to three years we will see a construct for consolidation,” Diamond said in a Bloomberg Television interview Thursday. The number of small U.S. banks will shrink to as low as 1,000 from roughly 4,500 now, he said.

Many regional and community banks have been struggling to keep up with surging expenses for technology and compliance, sparking speculation that they will be forced to combine in order to survive. The Trump administration’s push to lighten the regulatory burden on U.S. companies will act as an “accelerator” for mergers, Diamond said, adding that the previous administration often took a hard-line stance against approving acquisitions.

“Too many of the smaller banks are struggling to get their ROE above 0, never mind 10%,” he said, referring to return on equity.