Norway’s central bank announced Thursday that it won’t oppose a proposed merger between the country’s two biggest banks. The planned deal continues to raise consumer concerns, however, and still needs regulatory approval.
The Bank of Norway (Norges Bank) sent its conclusions to the country’s main regulatory agency, Kredittilsynet, noting that a desire for financial stability in Norway shouldn’t hinder a tie-up between Den norske Bank (DnB) and Gjensidige NOR.
The combined bank will dwarf other smaller banks in the Norwegian market and give the new so-called DnB NOR a huge market share.
Comeptition authorities remain skeptical but central bank officials aren’t concerned. Then claim competition among bank services is strong and will remain so after a merger.