In light of recent challenges in shadow banking, Barclays CEO CS Venkatakrishnan has committed to tighter lending practices, especially towards structured finance counterparties with questionable financial controls. The bank reported a £228 million impairment charge from the collapse of Market Financial Solutions (MFS) in February, alongside a £110 million hit from US sub-prime auto lender Tricolor last year. Despite these setbacks, Barclays' pre-tax profits rose 3% to £2.8 billion in the first quarter of 2026, reflecting overall financial stability. Venkatakrishnan emphasized that the bank does not currently see credit weakness in its UK or US consumer businesses, nor in corporate lending. However, he acknowledged the potential risks if issues in private credit were to escalate, particularly in the context of rising oil prices, which could impact the financial landscape. Overall, while Barclays is facing scrutiny, its financial position remains strong for now.