Deutsche Bank and Commerzbank, Germany’s two largest lenders, said on Sunday that they had begun merger discussions, in what analysts see as a last-ditch effort to create a national champion that can compete with the giant American investment banks.

In a statement, Deutsche Bank said that its board would explore “strategic options” meant to shore up its growth and profitability, and Commerzbank confirmed the merger talks. Both lenders cautioned that the talks may not lead to a deal.

The idea of merging the two firms has gained support in recent months within each bank, and with the German government, after previous rounds of talks over the years failed.

The combined bank would have $2 trillion in assets and be the third-largest lender in Europe, behind HSBC Holdings in Britain and BNP Paribas of France. Together, Deutsche Bank and Commerzbank would have about one-fifth of the private customers in Germany, in theory giving them enough critical mass to be profitable in the country’s overcrowded retail banking market.