Amplifi Capital, a London-based firm specializing in unsecured personal loans with interest rates reaching 50%, collapsed in June after failing to reconcile its business model with updated consumer credit regulations. Company filings reveal that NatWest acted as a primary financier for the lender by purchasing loan notes issued by Castor Financing, a special purpose vehicle established to acquire Amplifi's loan portfolios. This securitization arrangement allowed NatWest to maintain exposure to higher-risk consumer credit while keeping the debt off its primary balance sheet. The facility, which NatWest increased to £250 million as recently as March 2025, highlights a broader trend in the banking sector where institutions utilize non-bank financial intermediaries to bypass stricter capital requirements. By funding these entities through securitization rather than direct lending, banks can significantly reduce the capital they must set aside against potential losses. Asset manager M&G also participated in the funding, holding up to £56 million in junior debt notes. The collapse of Amplifi follows a string of similar failures among non-bank lenders in Britain, prompting the Bank of England to scrutinize whether these indirect exposures threaten the stability of the wider financial system. While European regulators maintain that the current level of bank exposure to private credit does not pose systemic risk, the opacity of these relationships remains a point of contention for investors wary of hidden defaults.