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

March 25 (Reuters) - Barclays BARC.L 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.

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.

Barclays has already pulled back from a number of deals and increased pricing to reflect higher perceived risks, one of the people said.

The bank declined to respond to a Reuters' request for comment.

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 is owed 495 million pounds ($664.29 million) from its exposure to MFS, a source familiar with the matter told Reuters earlier this month.

($1 = 0.7452 pounds)