AuctionsApr 01, 2026
John Jacob Astor IV’s Titanic Pocket Watch Heads to AuctionA Patek Philippe for Tiffany & Co. timepiece owned by the American businessman who died on the Titanic will be offered at Freeman's Chicago.
MajorsJun 15, 2016
Why Standard Chartered Shut Down Its Diamond Unit
The mid-stream sector of the diamond industry now “falls outside of the bank’s tightened risk tolerances,” the London-based lender said.
London--Standard Chartered Plc no longer will finance diamond traders and polishers after reevaluating its portfolio and determining there is too much risk for too little return in the sector.
The London-based bank began thoroughly reviewing all of its operations after CEO Bill Winters took over last year, looking to exit businesses generating low returns and/or that are vulnerable to large swings in loan impairment.
The trading and polishing sector of the diamond industry was certainly among those in Winters’ crosshairs, with the spike in defaults and bankruptcies last year--the bank was among those caught up in the massive Winsome Diamonds default--and the increased compliance reporting and regulatory capital costs associated with financing the industry.
In March, the London-based bank began to pull back, tightening its terms for lending to the diamond sector by asking dealers to provide more collateral or take out insurance protection on their loans.
Then, last week, JCKOnline.com broke the news that Standard Chartered would be exiting the diamond sector entirely.
In an official statement, the bank said that continuing to provide financing to diamond traders and polishers “falls outside of the bank’s tightened risk tolerances.”
A Standard Chartered spokesman added that it will still bank the mining and retail segments of the supply chain; its decision impacts only the mid-stream, meaning diamond traders and polishers.
A timeline for Standard’s shutdown of its diamond division has not yet been determined, though the bank said it is “working with clients to ensure a smooth exit.”
Eric Tunis, a partner at New York-based accounting and consulting firm Friedman LLP, said the news that Standard Chartered would no longer bank the diamond sector “wasn’t something that was shocking.”
There have been a number of warning signs, including the tightened lending restrictions and, very recently, the bank’s absence from the Las Vegas trade shows. Tunis said this is the first time he can recall not seeing anyone from Standard Chartered in Vegas.
He said the struggle with profitability among diamond manufacturers leading to loan defaults in the mid-stream, the slim margins banks now make when lending to diamond companies, and the general lack of robustness in the trade right now all make banks averse to financing it.
Friedman Co-Managing Partner Harriet Greenberg said compliance issues also are a factor.
Larger money center banks face hefty fines if it’s found that their clients are involved in money laundering, a practice many perceive to be rampant in the diamond industry.
“There’s a
stigma associated with the industry. It’s a very international business, and the nature of the product is, it’s mobile and it’s high value, so all those things go into the perception that there could be money laundering,” she said, though she noted that the stigma is undeserved.
“A lot of it is perception more than reality,” Greenberg said, noting that her firm’s clients, and many companies in the industry, have diligent quality control procedures in place.
The exit of Standard Chartered set off alarm bells around the industry, which has seen a number of banks pull back, and even pull out, in recent years.
Antwerp Diamond Bank is no more. Parent company KBC wound down its operations in 2014 after it is said it couldn’t find a buyer for the bank, though questions loom about the failed sale.
Dutch bank ABN Amro still lends to the mid-stream sector of the market, though sources in the diamond market say the bank has pulled back in recent years.
When asked to comment on Standard Chartered’s decision, Erik Jens, who heads the ABN Amro’s diamond and jewelry division, said he cannot comment on another bank’s strategy.
He noted, however, that in general banks “make risk adjusted return trade-offs on where to allocate capital. As for the diamond industry, we know that reputation and transparency still plays a role in those trade-offs, although we see the many initiatives of the industry to improve its image by self-regulation as well.
“In our opinion, for strong, corporate structured companies with a healthy balance sheet, a sustainable strategy and business plan and long-term potential and profitability, there is enough liquidity from several banks active in the sector, even attracting newcomers, including investors, in Europe, Asia, the U.S.A. and the Middle East.”
Greenberg said the exit of traditional lenders, like Standard Chartered and ADB before it, opens the door for non-bank players, such as hedge funds, to enter the sector and offer financial services.
“Anytime there’s a void, there’s an opportunity,” she said.
“A lot of it is perception more than reality,” Greenberg said, noting that her firm’s clients, and many companies in the industry, have diligent quality control procedures in place.
The exit of Standard Chartered set off alarm bells around the industry, which has seen a number of banks pull back, and even pull out, in recent years.
Antwerp Diamond Bank is no more. Parent company KBC wound down its operations in 2014 after it is said it couldn’t find a buyer for the bank, though questions loom about the failed sale.
Dutch bank ABN Amro still lends to the mid-stream sector of the market, though sources in the diamond market say the bank has pulled back in recent years.
When asked to comment on Standard Chartered’s decision, Erik Jens, who heads the ABN Amro’s diamond and jewelry division, said he cannot comment on another bank’s strategy.
He noted, however, that in general banks “make risk adjusted return trade-offs on where to allocate capital. As for the diamond industry, we know that reputation and transparency still plays a role in those trade-offs, although we see the many initiatives of the industry to improve its image by self-regulation as well.
“In our opinion, for strong, corporate structured companies with a healthy balance sheet, a sustainable strategy and business plan and long-term potential and profitability, there is enough liquidity from several banks active in the sector, even attracting newcomers, including investors, in Europe, Asia, the U.S.A. and the Middle East.”
Greenberg said the exit of traditional lenders, like Standard Chartered and ADB before it, opens the door for non-bank players, such as hedge funds, to enter the sector and offer financial services.
“Anytime there’s a void, there’s an opportunity,” she said.
The Latest
SurveysApr 01, 2026
Consumers’ Outlook Improves Again in MarchThe Conference Board’s Consumer Confidence Index edged up, with optimism about the present outweighing worries about the future.
IndependentsApr 01, 2026
Zachary’s Jewelers’ Constance Polamalu to Release Children’s BookThe retailer’s Zach Bear gift comes to life in “Zach Bear and the Window Necklace,” which centers on curiosity, bravery, and helping.
Brought to you by
Protect Your Customers and Your BusinessYou deserve to know what you are selling–to protect your customers as well as your business and your reputation.
Events & AwardsApr 01, 2026
AGA Opens 2026 Gemological Scholarship, Research Grant ApplicationsApplications are open for the AGA Gemological Scholarship Program through May 15, and until June 2027 for the Gemological Research Grant.
Weekly QuizMar 26, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
ColumnistsMar 31, 2026
Q1 Clues That Reveal Where Your Jewelry Store’s Sales Are Heading These customer behavior patterns say a lot about how successful your jewelry store is going to be this year, Emmanuel Raheb writes.
CollectionsMar 31, 2026
Mejuri Adds Silver to ‘Puzzle’ CollectionMejuri’s popular collection of 18-karat yellow gold vermeil rings debuted in sterling silver alongside new “Puzzle” slider charms.
Brought to you by
Is This You? Every Jeweler Has This Problem; We Have the Solution.Every jeweler faces the same challenge: helping customers protect what they love. Here’s the solution designed for today’s jewelry business.
CollectionsMar 31, 2026
Buddha Mama, Ashley Longshore to Host Pop-Up in DallasThe Miami-based jewelry brand and the NYC-based artist will be in Dallas from April 9-11.
SourcingMar 31, 2026
NDC Designates April 8 as 'World Diamond Day'The initiative invites those in the industry to share stories on social media highlighting the meaning and impact of natural diamonds.
SourcingMar 31, 2026
GIA VP Jillian Wolk to Take Over at Tracr Wolk’s first day on the job as CEO of Tracr, De Beers Group’s blockchain platform, will be May 1.
EditorsMar 30, 2026
Tom Moses Looks Back on His Decades at GIA Moses, who will leave the lab in May after nearly 50 years, discusses his start in the business, gemstones that stand out, and what’s next.
TrendsMar 30, 2026
Oscar Heyman Debuts First Spring CatalogThe new catalog, which showcases 35 one-of-a-kind pieces of jewelry, is a compliment to the company’s popular holiday catalog.
SourcingMar 30, 2026
Rio Tinto Hauls Last Load from DiavikProduction has ceased at the Canadian diamond mine, which has yielded more than 150 million carats of rough diamonds in its 23-year run.
MajorsMar 27, 2026
Saks Global Has Changed Its Mind About Closing These 3 StoresTwo Saks Fifth Avenue locations, one in Florida and one in California, and one Neiman Marcus store are off the chopping block.
IndependentsMar 27, 2026
Jimmy West, Longtime LJG Executive Director, Dies at 72West, who started in the art department at the Leading Jewelers Guild in 1979, is remembered for his patience, kindness, and dedication.
CollectionsMar 27, 2026
Itä’s ‘Yarí Whirl’ Ring Tells Every Side of the StoryIn the “Tesoro” version of the ring, our Piece of the Week, each side of the gold hexagonal nugget has a unique colored gemstone design.
WatchesMar 26, 2026
Q&A: Citizen Watch America President Jeffrey Cohen on Eco-Drive’s 50th AnniversaryCohen discusses the evolution of Citizen’s light-powered technology, the brand’s cross-generational appeal, and tariffs.
IndependentsMar 26, 2026
Peter Smith Pens Book on Human Behavior in Sales“Essentially Human: On Sales and Salespeople" reveals the underlying human traits and behaviors of the most successful sales professionals.
CollectionsMar 26, 2026
Lionheart Celebrates 13 Years of ‘Cassandane’The collection features symbols of love, luck, and light, based on the story of Queen Cassandane and Cyrus the Great of Persia.
Events & AwardsMar 26, 2026
NAJA, Instappraise Introduce New ScholarshipIt’s the third scholarship to be launched as part of the partnership to help appraisers advance their professional credentials.
Events & AwardsMar 26, 2026
JA Still Accepting Entries for 2026 CASE AwardsThe deadline for entries in the jewelry design competition has been extended to April 3.
SourcingMar 25, 2026
Rob Bates Steps Down as JCK News Director After 28 years with JCK, the veteran industry journalist is launching his own publication on Substack called The Jewelry Wire.
GradingMar 25, 2026
New York’s Natural History Museum, Wiley To Build Minerals DatabaseWiley said the project will give scientists worldwide access to the American Museum of Natural’s History renowned mineral collection.
CollectionsMar 25, 2026
Boochier Turns Flower Friendship Bracelets Into Fine JewelryThe “Flower Puff” collection looks to beaded flower friendship bracelets from childhood, turning the silhouette into nostalgic fine jewelry.
Policies & IssuesMar 25, 2026
Community for Ethical Jewelry to Host Bench Jeweler Shortage WebinarSet for April 2, the webinar will discuss how the jewelry industry can address the workforce gap.
IndependentsMar 24, 2026
Lisa Bayer, Illustrator and Beloved Member of the Muse Family, Dies at 64Bayer, founder of Lisa Bayer Designs, is remembered as “a bright light in every room.”
