Norway, Finland, Denmark and Sweden signed two memoranda of understanding to facilitate cross-border banking conducted through significant branches.

The MoUs specify how co-operation regarding significant branches in the four countries should be conducted.

Several large Nordic banking groups conduct cross-border activities in the neighboring countries, either through a branch or directly without such an establishment. "It is a common objective to contribute to a level playing field in the Nordic market and ensure effective and efficient supervision of significant branches located within the signatory countries," according to a press release from the Norwegian finance ministry.

The agreement comes as Nordea Bank AB (publ) is poised to convert its Danish, Finnish and Norwegian units into branches by early 2017.