Published by Global Banking & Finance Review®
Posted on March 25, 2026
2 min readLast updated: March 25, 2026
Add as preferred source on GoogleBarclays is retreating from asset‑based lending to smaller borrowers after suffering heavy losses tied to the collapses of MFS and Tricolor, and is refocusing on larger corporate loans and securitizations.
March 25 (Reuters) - Barclays is scaling back its asset-based lending to smaller borrowers after its exposure to collapsed Market Financial Solutions Ltd and Tricolor Holdings left the firm facing losses, Bloomberg News reported on Wednesday.
The British bank is shifting its focus to loans and securitizations for larger corporates, the report said, citing people who asked not to be identified discussing private information.
Barclays has already pulled back from a number of deals and increased pricing to reflect higher perceived risks, one of the people said.
The bank declined to respond to a Reuters' request for comment.
The collapse of London-based MFS, a little-known lender that specialised in complex property-related loans, and US subprime auto company Tricolor have revived concerns over banks' and private credit funds' lending practices as investors grow jittery about risks in wider credit markets.
Barclays is owed 495 million pounds ($664.29 million) from its exposure to MFS, a source familiar with the matter told Reuters earlier this month.
($1 = 0.7452 pounds)
(Reporting by Yamini Kalia in Bengaluru; Editing by Shinjini Ganguli)
Barclays is reducing asset-based lending after exposure to collapsed Market Financial Solutions and Tricolor Holdings led to significant losses.
Barclays is shifting its focus to loans and securitizations for larger corporates, moving away from smaller borrowers.
Barclays is owed 495 million pounds ($664.29 million) from its exposure to Market Financial Solutions.
The collapses have revived worries about banks' and private credit funds' lending practices and risks in broader credit markets.
Barclays has pulled back from deals and increased loan pricing to reflect higher perceived risks.
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