Barclays Pulls Back on Asset-Based Lending After MFS, Tricolor

Barclays Plc is reducing asset-based lending to smaller borrowers following recent financial setbacks, according to insiders familiar with the decision. The move follows losses tied to the collapses of Market Financial Solutions Ltd. and Tricolor Holdings, which exposed vulnerabilities in the bank’s lending strategy. The policy shift targets smaller borrowers, signaling heightened risk aversion amid market instability and recent defaults. No timeline was specified for the pullback, but the adjustment reflects broader caution in asset-backed financing sectors. The decision underscores growing prudence among major lenders after high-profile failures eroded confidence in niche lending markets.