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Standard Chartered Exits Diamond Business
Jun 13, 2016 6:48 AM
By Rapaport News
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RAPAPORT... 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.
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Tags:
Banking, financial, lending, Rapaport News, StanChart, Standard Chartered
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