Kredittilsynet, the Norwegian banking, insurance and securities commission, has recommended the country's government approve the Nkr18bn (€2.3bn) banking merger of DnB and Gjensidige, raising hopes for the deal's advisers.

Kredittilsynet's recommendation comes the week after the Norwegian competition authority said it might block the deal because of potential competition problems. The banking commission found that solvency concerns, competition concerns and provisions in the financial legislation should not present obstacles to the merger.