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
Barclays Pulls Back Asset-Based Lending After MFS and Tricolor Collapse
Barclays Adjusts Lending Strategy Amid Losses
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.
Shift in Focus to Larger Corporates
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.
Withdrawal from Smaller Deals
Barclays has already pulled back from a number of deals and increased pricing to reflect higher perceived risks, one of the people said.
Official Response
The bank declined to respond to a Reuters' request for comment.
Impact of MFS and Tricolor Collapse
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' Financial Exposure
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.
Currency Exchange Rate
($1 = 0.7452 pounds)
Reporting Credits
(Reporting by Yamini Kalia in Bengaluru; Editing by Shinjini Ganguli)
