"All necessary documents have been submitted to the regulator and we are currently awaiting the answer," Gabrilovica said. "The merger must be agreed upon with several regulators, and the process may involve changes requiring additional time for securing all permissions. We have also submitted the documents to the European Commission for review. At this point, though, we see no obstacles to receiving the permissions."

The Latvian head of Luminor also noted that the whole merger process may take roughly two and a half to three years until it can be deemed finalized.

Asked about the new bank's client base, Gabrilovica said that it will include local businesses and residents interested in investment. "One of our advantages will be a more effective and client-friendly decision-making process," she highlighted. "We will be much closer to our clients and thus able to respond to their needs and take decisions faster. We may be smaller by Scandinavian and European standards, but we will be a big bank by regional standards in the Baltics."

In August 2016, Nordea and DNB announced their decision to merge the operations of their two banks in the Baltics. That November, Erkki Raasuke was appointed CEO and Nils Melngailis chairman of the board of Luminor. The new bank is set to become the second largest bank in the Baltics. The bank's estimated market share is 20 percent.