Published by Global Banking & Finance Review®
Posted on February 27, 2026
1 min readLast updated: April 2, 2026
Add as preferred source on GoogleBarclays shares dipped after revelations of significant exposure—estimated between £500m–£600m—to the collapse of UK mortgage firm Market Financial Solutions. Citi urged caution over unprovisioned risk as this sparks scrutiny of private‑credit lending practices.
LONDON, Feb 27 (Reuters) - Barclays shares fell in early trade on Friday after a report in the Times said the company faces potential losses related to the collapse of UK mortgage provider Market Financial Solutions (MFS).
By 0822 GMT. shares were down 1.1% at 467 pence per share, underperforming the FTSE 350 index of bank stocks, which was up 0.18%.
Barclays did not immediately respond to request for comment.
The Times reported Barclays has 600 million pound ($809.70 million) exposure to MFS. Citi said that the figure may warrant some caution.
"Arranging a loan is very different to retaining that risk on B/S (balance sheet)," Citi said.
"Also not clear if/how much could already be provisioned against (if anything)."
Shares in Jefferies Financial Group fell 3.4% on Thursday after Bloomberg reported that the company had an exposure of about 100 million pounds to MFS.
($1 = 0.7410 pounds)
(Reporting by Samuel Indyk and Lawrence White; Editing by Amanda Cooper)
Initial reports put exposure at about £600 million, later refined to roughly £500 million owed by MFS‑related entities.
Shares fell around 1.1% after reports of Barclays’ sizable exposure to MFS and uncertainty over potential losses provoked investor concern.
Citi analysts cautioned that arranging loans isn’t the same as retaining risk on the balance sheet and it’s unclear if any provisions had been made.
Barclays had frozen MFS’s accounts months before the collapse and is now pulling back from asset‑backed lending to smaller borrowers.
The collapse underscored hidden risks in the private‑credit market and triggered regulatory scrutiny of underwriting practices and lending standards.
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