Standard Chartered has terminated lending to the midstream diamond and jewelry industry as it curbed its exposure to businesses that fail to meet its “new risk profile.”
“When we announced our new strategy, we said that we would look to exit businesses that were non-performing or that did not meet our new risk profile, with all of our business segments subject to review,” the London-based lender, with significant operations in Asia, said in a statement.
“As a result of this review, it has been concluded that continuing to provide financing to the midstream diamond and jewelry segment falls outside of the bank’s tightened risk tolerances. We are working with clients to ensure a smooth exit.”
Standard Chartered has lent about $2 billion to the industry, Bloomberg reported. The decision to exit the industry comes after the bank tightened its terms of lending to clients in the diamond sector, requiring manufacturers to secure payment insurance or provide 100-percent collateral.
This post was written by StettnerInvestment