Barclays is reportedly reducing its asset-based lending to smaller borrowers, following significant losses from the collapses of MFS and Tricolor. Bloomberg posted on X, citing sources familiar with the situation, that the financial institution is reassessing its lending strategies in response to these setbacks. The decision comes as Barclays aims to mitigate risks associated with lending to smaller entities, which have proven vulnerable in recent market conditions. The move reflects a broader trend among banks to tighten lending criteria amid economic uncertainties. Barclays' shift in strategy highlights the challenges faced by financial institutions in balancing risk and growth in the current economic climate.