TORONTO (Reuters) - Sitting on a pile of capital and looking to expand, Canadian banks agree on two things: acquisition opportunities abound, and time is on their side.

But in-depth interviews with the chief executives of the nation's four largest banks suggest each has its own strategy for growth -- and each its own degree of caution.

Indeed, the Canadian penchant for prudence is a common thread linking Bank of Montreal (BMO.TO), Royal Bank of Canada (RY.TO), Toronto-Dominion Bank (TD.TO) and Bank of Nova Scotia (BNS.TO) as they eye acquisitions from atop the global banking heap.

"Just because a financial institution is sitting there for sale at an attractive price doesn't mean our banks are going to swoop in and pick something up. They're doing their due diligence," said Janet Ecker, a former Ontario finance minister and now head of the Toronto Financial Services Alliance.

Regulators say the caution is well-placed on the part of the banks, all of which are well-regulated, prudent institutions that boast capital levels near 10 percent .

"I think (caution) is the right stance to take," said Julie Dickson, head of Canada's federal regulator, the Office of the Superintendent of Financial Institutions.

"They will be looking at opportunities and our role is to try to ensure ... they appreciate the challenges of expanding further. Timing is everything."

Here are the views from the CEOs of the four big players in the market in recent interviews with Reuters:

ROYAL BANK OF CANADA

Canada's largest, has targeted organic growth of its capital markets unit and a broadening of U.S. and UK banking.

"We're way over capitalized right now. We know we're over capitalized, the market knows we're overcapitalized, but that's not going to change in the short term because we want to continue to run a very conservative organization," said Gordon Nixon, the head of Royal Bank.

That's not to say Royal, which built its presence in the U.S. Southeast with a 2001 purchase of North Carolina-based Centura, doesn't have an expansion plan. Nixon aims to invest in Royal's capital markets unit and is looking for ways to build private banking and wealth management.

"In terms of acquisition opportunities, outside of Canada, we've said that our priorities would be either banking or wealth management," said Nixon, 52, pointing to RBC Dexia, its joint venture with Belgian-based Dexia group, as a model.

"I think there are opportunities for consolidation in that industry, largely because a lot of banks have restructured and are looking to shift their business mix," Nixon said.

"I would emphasize we're in no rush. We're not going to run out and buy an asset manager simply because they're available. ... (Opportunities) are going to increase in number, not shrink in number over the next year."

TORONTO-DOMINION BANK

A big retail player in the U.S. Northeast, TD Bank wants to expand southwards and is eyeing deals that will help it push down the U.S. East Coast in urban centers. Its boast is a retail brand of extended hours and convenience.

But Chief Executive Ed Clark admits there is every chance that Canada's banks could miss the boat on acquisitions simply because none is desperate to take over the world.

"I think there's a real possibility that we could be excessively cautious here," said Clark, noting that he has no intention of attempting unfriendly deals. "We're not having to do those to mark out our place in the world."

"I think now is the time to go in the South, the deposits are still there and the assets are now rightly valued," Clark said. "We have really no desire to go to the Midwest or the West. We think that market is well taken."

BANK OF NOVA SCOTIA

Canada's third-largest bank is taking a different tack by continuing its slow but steady creep into less developed countries in Latin American, the Caribbean and Asia.

Scotiabank is already the most international of Canada's banks, and has resisted opportunities to ease into the U.S. market. It deployed Chief Executive Rick Waugh last year to "mystery shop" an Ohio bank before deciding against the buy.

"The first check, even though it was a small one, could have been the most expensive. Look what has happened to the American institutions who have made an acquisition there in the last two years," Waugh said.

Scotiabank is inclined to stick to its pattern of buying a small stake in an emerging market, where there are relatively few banks and growth prospects are huge. Invest C$50 million ($44 million) or C$100 million, and history shows Scotia emerges as a big regional player.

"The difference with us is the bets were small, and we stayed diversified," Waugh said. "Because the U.S. is such a big market, the bets are not small."

BANK OF MONTREAL

BMO, which recently snapped up the Canadian life insurance business of American International Group Inc (AIG.N), and is looking to build its franchise in the U.S. Midwest, where its Harris brand is already strong.

"This is not one of those situations where (opportunities) are going fast," said Chief Executive William Downe.

"The ability to acquire properties at a price that will allow you to earn returns today is significantly better than it was 24 months ago."

($1=$1.13 Canadian)

By Andrea Hopkins (Additional reporting by Pav Jordan; editing by Rob Wilson)