AuctionsSep 17, 2025
Mythical Set of Patek Philippe Pocket Watches Expected to Sell for $10M+A set of four Patek Philippe “Star Caliber 2000” pocket watches is part of Sotheby’s upcoming auction in Abu Dhabi.
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.
More on Majors
The Latest
TrendsSep 17, 2025
Silvia Furmanovich’s Book Tells the ‘Journey of a Jeweler’The Brazilian jeweler’s latest book marks her namesake brand’s 25th anniversary and tells the tale of her worldwide collaborations.
WatchesSep 17, 2025
Bob’s Watches Acquires Vintage Rolex Won on ‘The Price is Right’ The Submariner Ref. 1680 with a Tiffany & Co. dial came from the original owner, who won it as a prize on the game show in the 1970s.
Brought to you by
reDollar.com Is Rolling Out the Next Level Jewelry, Diamond & Watch Consignment ProgramWith their unmatched services and low fees, reDollar.com is challenging some big names in the online consignment world.
TechnologySep 17, 2025
Jewelers Mutual Launches Shipping Solution App for Shopify The new integration allows users to manage shipments directly from the Shopify dashboard.
Weekly QuizSep 12, 2025
This Week’s QuizTest your jewelry news knowledge by answering these questions.
EditorsSep 16, 2025
Out & About: 7 Great Quotes From Converge in CarlsbadAt Converge 2025, Editor-in-Chief Michelle Graff attended sessions on DEI, tariffs, security, and more. Here are her top takeaways.
CrimeSep 16, 2025
2 Robbery Suspects Killed in California Pawn Shop ShootoutSix people were shot last week at an Oakland cash-for-gold shop as employees exchanged gunfire with individuals trying to rob the store.
Brought to you by
Rallying Call for the Jewelry Industry on Tariffs and Other Key IssuesJewelers of America is leading the charge to protect the industry amidst rising economic threats.
CollectionsSep 16, 2025
Chopard Adds New Designs to Its ‘Ice Cube’ Capsule CollectionThe jeweler has expanded its high jewelry offering, which launched last year, with new pieces featuring its cube motif that debuted in 1999.
SourcingSep 16, 2025
Natural Diamond Council Launches Retailer Accreditation ProgramBen Bridge Jeweler and Lux Bond & Green were a part of the pilot program.
EditorsSep 15, 2025
Skipping the Necklace, Embracing Snakes: The Best Jewelry From the 2025 Emmy AwardsAssociate Editor Natalie Francisco shares eight of her favorite jewelry looks from the 77th annual Primetime Emmy Awards, held Sunday night.
SurveysSep 15, 2025
Resilient Shoppers to Boost Holiday Retail Sales, Says DeloitteIt’s predicting a rise in retail sales this holiday season despite economic uncertainty and elevated inflation.
SourcingSep 15, 2025
Gemfields Achieves $32M at High-Quality Emerald AuctionIt included the sale of the 11,685-carat “Imboo” emerald that was recently discovered at Kagem.
SourcingSep 15, 2025
AGTA Elects 8 Members to Board of Directors The newly elected directors will officially take office in February 2026 and will be introduced at the organization’s membership meeting.
EditorsSep 12, 2025
Out & About: Mining Sapphires in Rock Creek, MontanaAssociate Editor Lauren McLemore headed out West for a visit to Potentate Mining’s operation hosted by gemstone wholesaler Parlé Gems.
TrendsSep 12, 2025
Piece of the Week: Arunashi’s Fordite and Rhodolite EarringsFordite is a man-made material created from the layers of dried enamel paint that dripped onto the floors of automotive factories.
Events & AwardsSep 12, 2025
Al Gilbertson Wins 2025 Robert M. Shipley AwardGilbertson has worked as a researcher, jeweler, lapidary artist, appraiser, and business owner throughout his decades in the industry.
Policies & IssuesSep 11, 2025
Supreme Court to Hear Tariffs Case in November A decision likely won’t come until January 2026 at the earliest, and the tariffs remain in effect until then.
SourcingSep 11, 2025
Need to Sell More Natural Diamonds? De Beers Has an App for ThatThe new, free app offers accessible educational content, like games and podcasts, for U.S. retailers.
SourcingSep 10, 2025
Tech Meets Style in the New Loewe x Jacob & Co. HeadphonesJacob & Co. partnered with the German technology company on two pairs of headphones, one set with diamonds and the other with sapphires.
TrendsSep 10, 2025
Tiffany & Co. Archival Jewels Bring Life to ‘Frankenstein’Guillermo del Toro’s 2025 “Frankenstein” will feature 27 jewels and objects from the storied brand, including pieces from its archives.
MajorsSep 10, 2025
24 Karat Club of New York’s Banquet to Return to Waldorf AstoriaThe Waldorf Astoria New York’s grand reopening this past summer means a homecoming for the industry group’s annual event.
SourcingSep 09, 2025
Anglo American to Merge With Canadian Copper Miner Anglo plans to merge with Teck Resources Ltd. to form Anglo Teck. The deal changes nothing about its plans to offload De Beers.
AuctionsSep 09, 2025
‘The Mellon Blue’ to Return to Auction, This Time at Christie’s The 9.51-carat fancy vivid blue diamond, which set two world auction records at Sotheby’s in 2014, is estimated to fetch up to $30 million.
AuctionsSep 09, 2025
Phillips Names Dianne Batista Head of Jewels, New YorkThe industry veteran joins the auction house as it looks to solidify its footprint in the jewelry market.
MajorsSep 09, 2025
MJSA Education Foundation Announces 2025 Scholarship WinnersThe nonprofit awarded four students pursuing a professional career in jewelry making and design with $2,250 each.
IndependentsSep 08, 2025
Take a Look Inside the New Korman Store in AustinThe Texas-based jeweler has also undergone a brand refresh, debuting a new website and logo.
