There are reports that Britain's biggest banks are involved in behind-the-scenes talks on a joint plan to cut bonus payouts and boost lending to small businesses.
Senior executives from Barclays, HSBC, Standard Chartered and Royal Bank of Scotland are understood to have held discussions last week, The Times in London said.
The discussions come as pressure mounts from politicians and business leaders to lower the pooled bonus pot ahead of January's bonus round.
John Varley, outgoing chief executive of Barclays, is believed to be a key player in the talks, which are continuing. The industry trade body, the British Bankers' Association, is not involved and declined to comment.
The banks are looking at reducing the overall level of bonus payments, it was claimed, but are resisting the idea of an absolute cap on individual bonuses, as this would leave them at a disadvantage to their overseas rivals.
A study by the Centre for Economics and Business Research (CEBR) - which took into account all City workers including fund managers and staff working with equities and bonds - forecast the total bonus pot to hit £7 billion this year alone.
It is understood the banks want to release a joint statement before Christmas after they have agreed a position.
The banks are also believed to be looking at increasing lending to small businesses, which could involve a pledge to commit a fixed total amount to small business lending next year.
Earlier in the year, bosses of UK banks, co-ordinated by the BBA, unveiled plans for a £1.5 billion growth fund for small businesses. It is not clear if the discussions are related to this project.
