Few biggest banks of Germany consider merger option, in order to strengthen positions on the market, which differs with high level of competition, Bloomberg reports.

This initiative may lead to creation of the second largest bank in the country. Pressure on behalf of market and regulators makes bank to step away from tradition and find outsied shareholders.

According to the plan, Helaba and NordLB will merge first, DekaBank and LBBW will most likely join later. This merger will be the biggest in Germany since 2010 and will create a bank with 700 billion euro in assets, which is larger than second sized Commerzbank AG.

Today German banks are especially vulnerable to risks and need capital. Recent stress test showed that common equity tier 1 ratio of NordLB may fall to 7% by 2020. According to ECB's requirement it shall be 9,55% this year.