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

Barclays Plc is scaling back its asset-based lending to smaller borrowers, according to people with knowledge of the matter, after the collapses of Market Financial Solutions Ltd. and Tricolor Holdings left the firm facing losses.

The British bank is shifting its focus to loans and securitizations for larger corporates, said the people, who asked not to be identified discussing private information. The bank has already pulled back from a number of deals and increased pricing to reflect higher perceived risks, one of the people said.