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Barclays pulls back on asset-based lending after MFS, Tricolor collapse, Bloomberg News reports

BCS
Banking & LiquidityCredit & Bond MarketsCompany FundamentalsManagement & Governance

Barclays is scaling back asset-based lending to smaller borrowers after exposures to collapsed Market Financial Solutions Ltd and Tricolor Holdings led to losses, Bloomberg reports. The move signals a tighter credit stance that could reduce new originations and fee income in its ABL portfolio and exert modest downside pressure on loan growth and risk-weighted assets in coming quarters.

Analysis

Barclays is scaling back asset-based lending to smaller borrowers after exposures to collapsed Market Financial Solutions Ltd and Tricolor Holdings led to losses, Bloomberg reports. The move signals a tighter credit stance that could reduce new originations and fee income in its ABL portfolio and exert modest downside pressure on loan growth and risk-weighted assets in coming quarters.

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