TrendsFeb 17, 2026
A Bit of Jewelry for the Year of the HorseWestern wear continues to trend in the Year of the Fire Horse and along with it, horse and horseshoe motifs in jewelry.
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
SourcingFeb 17, 2026
Colored Gemstone Experts Talk Tariffs, Trends in TucsonAlthough the market is robust, tariffs and precious metal prices are impacting the industry, Stuart Robertson and Brecken Branstrator said.
GradingFeb 17, 2026
Dr. George Rossman, Former GIA Governor, Dies at 81Rossman, who advised GIA for more than 50 years, is remembered for his passion and dedication to the field of gemology.
Brought to you by
The MJSA Mentor & Apprenticeship Program: Attracting & Training the Next Generation of Bench JewelersLaunched in 2023, the program will help the passing of knowledge between generations and alleviate the shortage of bench jewelers.
CrimeFeb 13, 2026
JSA Offering $10K Reward in Nancy Guthrie Case Guthrie, the mother of “Today” show host Savannah Guthrie, was abducted just as the Tucson gem shows were starting.
Weekly QuizFeb 12, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
IndependentsFeb 13, 2026
97-Year-Old New Mexico Jewelry Store To CloseButterfield Jewelers in Albuquerque, New Mexico, is preparing to close as members of the Butterfield family head into retirement.
CollectionsFeb 13, 2026
A ‘Rosebud’ Necklace for Valentine’s DayPaul Morelli’s “Rosebud” necklace, our Piece of the Week, uses 18-karat rose, green, and white gold to turn the symbol of love into jewelry.
Brought to you by
How Jewelers Can Fight Back Against Cell JammersCriminals are using cell jammers to disable alarms, but new technology like JamAlert™ can stop them.
CollectionsFeb 12, 2026
British Museum Raises $5M to Keep Jewel Linked to Henry VIII, Katherine of AragonIt is believed the 24-karat heart-shaped enameled pendant was made for an event marking the betrothal of Princess Mary in 1518.
SourcingFeb 12, 2026
‘Cotton Candy’ Necklace, 35-Carat Kunzite Win 2025 ‘Buyer’s Choice’ AwardsThe AGTA Spectrum and Cutting Edge “Buyer’s Choice” award winners were announced at the Spectrum Awards Gala last week.
Events & AwardsFeb 12, 2026
Kering Opens Entries for 2026 Sustainability-Focused AwardThe “Kering Generation Award x Jewelry” returns for its second year with “Second Chance, First Choice” as its theme.
TrendsFeb 11, 2026
Halle Berry’s Retro Engagement Ring Is a Sapphire-Set StunnerSourced by For Future Reference Vintage, the yellow gold ring has a round center stone surrounded by step-cut sapphires.
MajorsFeb 11, 2026
Francesca’s Files for Chapter 11 Bankruptcy AgainThe clothing and accessories chain announced last month it would be closing all of its stores.
CollectionsFeb 11, 2026
Zales Turns Sweethearts Into Jewelry for Valentine’s Day CollectionThe “Zales x Sweethearts” collection features three mystery heart charms engraved with classic sayings seen on the Valentine’s Day candies.
TechnologyFeb 11, 2026
Gemvision Symposium 2026 Slated for AprilThe event will include panel discussions, hands-on demonstrations of new digital manufacturing tools, and a jewelry design contest.
Events & AwardsFeb 11, 2026
TJS Announces Roundtable, Launches New AppRegistration is now open for The Jewelry Symposium, set to take place in Detroit from May 16-19.
SourcingFeb 10, 2026
At Meeting in South Africa, Support for Natural Diamonds Picks Up Steam Namibia has formally signed the Luanda Accord, while two key industry organizations pledged to join the Natural Diamond Council.
TrendsFeb 10, 2026
Bad Bunny Wears Football-Shaped ‘Desert Diamond’ for Halftime PerformanceLady Gaga, Cardi B, and Karol G also went with diamond jewelry for Bad Bunny’s Super Bowl halftime show honoring Puerto Rico.
SurveysFeb 10, 2026
Shoppers to Spend Big on Jewelry This Valentine’s Day, Says NRFJewelry is expected to be the No. 1 gift this year in terms of dollars spent.
FinancialsFeb 10, 2026
Kering Plans Transformation as 2025 Sales Sink 13%As star brand Gucci continues to struggle, the luxury titan plans to announce a new roadmap to return to growth.
SourcingFeb 10, 2026
AGTA To Debut ‘Stuller Color of the Year’ Spectrum Awards CategoryThe new category asks entrants for “exceptional” interpretations of the supplier’s 2026 color of the year, which is “Signature Red.”
Policies & IssuesFeb 09, 2026
U.S., India Trade Deal One Step Closer to Being FinalizedThe White House issued an official statement on the deal, which will eliminate tariffs on loose natural diamonds and gemstones from India.
Events & AwardsFeb 09, 2026
JA Now Accepting Entries for 2026 CASE AwardsEntries for the jewelry design competition will be accepted through March 20.
IndependentsFeb 09, 2026
James Free Jewelers Unveils Revamped FlagshipThe Ohio jeweler’s new layout features a curated collection of brand boutiques to promote storytelling and host in-store events.
TrendsFeb 09, 2026
These 14 Jewels Will Melt Your Heart This Valentine’s DayFrom heart motifs to pink pearls, Valentine’s Day is filled with jewelry imbued with love.
CrimeFeb 06, 2026
Florida Man Sentenced After Selling Fake Native American Jewelry for a Decade Prosecutors say the man attended arts and craft fairs claiming he was a third-generation jeweler who was a member of the Pueblo tribe.
FinancialsFeb 06, 2026
Pandora’s North America GM Departs Amid Executive ChangesNew CEO Berta de Pablos-Barbier shared her priorities for the Danish jewelry company this year as part of its fourth-quarter results.
