Lloyds TSB has made a tentative approach to buy Germany’s Dresdner Bank from Allianz, the insurance group, in the latest sign that the UK’s fourth-largest bank is looking to take advantage of opportunities in the country’s retail banking market in the wake of the credit crunch.

Lloyds, which is among a handful of European banks left unscathed by the credit crisis, is considering whether to mount a takeover bid for Dresdner, which is worth about £6bn. However, the situation is at an early stage and no firm offer is imminent.