Standard Chartered has cut lending to the midstream diamond and jewellery industry. This comes as a result of the company’s desire to limit its relationships with trades 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,” said the London-based lender in a statement. “As a result of this review, it has been concluded that continuing to provide financing to the midstream diamond and jewellery segment falls outside of the bank’s tightened risk tolerances. We are working with clients to ensure a smooth exit.”
According to Bloomberg, Standard Chartered has lent about $2 billion to the industry. This decision follows the bank’s tightened terms of lending to clients in the diamond sector, which required manufacturers to secure payment insurance or provide 100 per cent collateral.
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