NatWest's £250m Stake in Collapsed Consumer Credit Firm Raises Systemic Risk Concerns

NatWest, Britain's biggest business lender, provided up to £250 million in funding to Amplifi Capital, a London-based consumer credit firm that collapsed last month. According to company filings, NatWest lent this amount through Castor Financing, a business that financed Amplifi from 2023 to 2025.

Amplifi specialized in unsecured personal loans with interest rates ranging from 23% to 50%. The firm's assets totaled £119 million as of March 2024. It entered insolvency after struggling to adapt to new consumer credit rules introduced earlier this year.

The Bank of England and other global regulators are examining whether defaults by non-bank financial institutions (NBFI) pose a risk to the wider financial system. NatWest's involvement with Amplifi highlights how banks have lent large sums to NBFIs, which can offer higher returns but also carry greater risks.