SurveysOct 16, 2026
How Inflation, Gas Prices Will Affect Holiday Sales The NRF is expecting holiday sales to increase this year, but consumers and retailers alike are facing Grinch-like headwinds.
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
CollectionsOct 16, 2026
Christina Puchi’s Earrings Hold the UniverseOur Piece of the Week gathers the planets, represented by a variety of colored gemstones, in a pair of 14-karat yellow gold earrings.
IndependentsOct 16, 2026
Reeds Jewelers Expands, Relocates FlagshipThe New York-based jeweler is moving its Amherst flagship store to a larger location in nearby Snyder.
Brought to you by
Meet Gemology’s Next Generation Microscope: GIA® Gemolite® NXT Professional EditionExperience gemstones with greater precision and comfort than ever before.
IndependentsOct 15, 2026
Retailer Hall of Fame 2026: Amy and Elise Greenberg For 40 years, sisters Amy and Elise Greenberg have helmed their 126-year-old family business, leading with appreciation and integrity.
Weekly QuizOct 15, 2026
This Week’s QuizTest your jewelry news knowledge by answering these questions.
ColumnistsOct 15, 2026
Peter Smith: What Is the Culture REP?It’s a term Smith coined and felt compelled to share following a bad experience with an aborted flight and an unfeeling flight attendant.
WatchesOct 15, 2026
Stephanie Gottlieb’s New Movado Watches Are Made for Your Wrist StackMovado teamed up with the New York-based fine jewelry designer on a new collection of Movado Museum Velura watches.
Brought to you by
Your Piece Could Be the One Editors Talk AboutSubmit your pieces for a chance to win in this year's competition.
SourcingOct 15, 2026
Signet Jewelers, Richemont May Join Bidder for De Beers, Report SaysThe two companies are reportedly in talks to join the Global Diamond Consortium, led by former De Beers CEO Gareth Penny, as per Bloomberg.
CollectionsOct 15, 2026
Wolf x Marla Aaron's New Jewelry Box Is for Some (Not All) of Your ThingsThe “Some of the Things” box follows the two larger “Everything” box designs with the look and function of antique sewing and toolboxes.
IndependentsOct 14, 2026
Retailer Hall of Fame 2026: Coleman and Mitchell ClarkFourth-generation jewelers Coleman and Mitchell Clark exemplify the best qualities of their predecessors: humility, modesty, and confidence.
SourcingOct 14, 2026
Manuel Marcial de Gomar, ‘The Emerald Whisperer,’ Dies at 90The gem hunter, whose 70-year career was defined by adventure and exploration, is remembered for his steadfast faith and sense of wonder.
FinancialsOct 14, 2026
LVMH’s Jewelry Brands Turn in ‘Very Good’ Performance in Q3 Tiffany & Co. continued its full-scale store renovation project while Bulgari’s high jewelry collection generated “record-breaking revenue.”
Events & AwardsOct 14, 2026
Chicago Responsible Jewelry Conference Releases 2026 ProgramThis year’s sessions feature leading voices from human rights, legal, and conservation organizations.
Lab-GrownOct 13, 2026
Stephanie Gottlieb Takes Lab-Grown Diamond Collection WholesaleThe jewelry designer has partnered with Sofer Jewelry to distribute her 85-piece lab-grown diamond collection.
IndependentsOct 13, 2026
Retailer Hall of Fame 2026: Sean DunnDunn, this year’s Single-Store Independent inductee, is passionate about innovation and telling the story of natural diamonds.
AuctionsOct 13, 2026
Christie's Geneva To Auction 'Bulgari Pink' DiamondThe 24-carat fancy intense pink diamond ring could fetch up to $18 million at the November sale.
IndependentsOct 13, 2026
Greenwich St. Jewelers’ New Candle Smells Like HomeThe “Island Jewel” candle honors New York City and Puerto Rico and raises money for the island’s water relief efforts.
TechnologyOct 13, 2026
GemFind Is a New JA Member Benefit Partner The partnership will give JA members access to preferred pricing, exclusive benefits, technology solutions, education, and resources.
SurveysOct 09, 2026
These Will Be the 10 Busiest Days for In-Store Shopping This Holiday SeasonStores should expect to see the most customers on Nov. 27, and Christmas week is expected to be hectic too, as Dec. 25 falls on a Friday.
CollectionsOct 09, 2026
Elisa Solomon Collabs With Serendipity 3 on ‘Frozen Hot Chocolate’ CharmThe charm, our Piece of the Week, features brown diamond frozen hot chocolate topped with white diamond whipped cream and a ruby straw.
AuctionsOct 09, 2026
8-Carat Blue Diamond Goes Unsold at UK Jewelry Auction The top lot of Elmwood’s recent fine jewelry sale in London was a 1.84-carat, D color Tiffany & Co. solitaire diamond ring.
WatchesOct 09, 2026
Movado to Sell Majority Stake in Ebel for $66.5MThe watch company agreed to sell a 95 percent interest to a group comprised of F.P. Journe, Chanel, and Swiss watch exec Pierre Jacques.
Policies & IssuesOct 08, 2026
Third Wave of IEEPA Tariff Refunds Begins This round of tariff refunds is for importers that have sued over IEEPA tariffs in the Court of International Trade and won.
CollectionsOct 08, 2026
Brent Neale’s New Collection Goes ‘Back to Basics’It revisits the brand’s most requested silhouettes, from "Pillow"-set necklaces and bracelets to "Signature"-set rings and earrings.
SourcingOct 08, 2026
Ethical Gem Fair Heads Back to BrooklynThe trade-only event includes buying opportunities as well as educational sessions on artisanal mining, the new Paraíba source, and more.
Events & AwardsOct 08, 2026
Pattons Fine Jewelry Sweeps Local Design ContestAra Chanakian, a jeweler at Pattons, took home top honors in every category at Jewelers of Louisiana’s annual jewelry design competition.
