Barclays Plc has been exploring a potential merger with rival banks including Standard Chartered Plc, as part of wide-ranging contingency plans being weighed by senior board members following pressure from an activist investor, the Financial Times reported.

Chairman John McFarlane was at least theoretically keen on the idea of combining with Standard Chartered, and was supported by Deputy Chairman Gerry Grimstone, the FT reported, citing two unidentified people close to the situation.

A private conversation took place between a director at each bank about the possible benefits of such a deal, though no bid approach had been made, one of the people said, according to the FT.

There has been no formal discussion of the potential combination on the Barclays board, one of the people said.