ABN Amro Closing New York, Dubai Diamond Lending Offices

FinancialsMay 21, 2018

ABN Amro Closing New York, Dubai Diamond Lending Offices

The Amsterdam-based bank joins other financial institutions in pulling back from the diamond business.

New York--ABN Amro is closing its diamond and jewelry lending offices in both New York and Dubai as it continues to cut back on financing to the trade as a whole.

Brigitte Seegers, a spokeswoman for the Amsterdam-based bank, said it made the announcement during its first quarter earnings call May 14 that it will “discontinue” its Diamonds & Jewellery Clients service in the United States due to “the very small portfolio,” while the Dubai office is being closed due to “lack of scale.”

“We are in close contact with our Diamond & Jewellery clients in these locations to find alternative solutions,” Seegers said, adding that the bank will keep its diamond and jewelry offices in Belgium and Hong Kong open and will “work to further improve the risk profile of those portfolios.”

The announcement of the decision comes six months after the bank announced that Erik Jens, who had headed the bank’s diamond and jewelry business globally since 2012, would be leaving to “pursue his career outside the bank,” while ABN Amro restructured its business, moving its diamond and jewelry division under Trade & Commodity Finance within its Commercial and Institutional Banking business.

Geert van Reisen has replaced Jens as the global head of Diamond & Jewellery Clients.

RELATED CONTENT: Nirav Modi Case Is Another ‘Nail in the Coffin’
ABN Amro is the latest in a string of financial institutions to cut back on or withdraw from financing the trade after determining there is too much risk for little return in the sector.

Among those to exit entirely were Antwerp Diamond Bank, which began winding down its activities in 2014; Bank Leumi, which also closed in 2014; and Standard Chartered, which shut down its diamond unit in 2016.
Michelle Graffis the editor-in-chief at National Jeweler, directing the publication’s coverage both online and in print.

The Latest

Policies & IssuesMay 14, 2021
Petra Reaches $6M Settlement Amid Claims of Human Rights Abuses

A report by a nonprofit documented an alleged seven deaths and 41 assaults on artisanal miners at the Williamson mine in Tanzania.

AuctionsMay 14, 2021
Phillips’ New Selling Exhibition Celebrates Female Designers

It features pieces from the likes of Solange Azagury-Partridge, Suzanne Belperron, Marina B, and Silvia Furmanovich.

Recorded WebinarsMay 14, 2021
Watch: Dissecting the Vintage Watch Craze

Watchfinder & Co. US Country Manager Edouard Caumon talks the timepieces retaining value and current marketplace trends.

Brought to you by
How to Engage and Sell to Millennials

Millennials were once feared in the diamond industry, but now this younger generation has become today’s largest diamond buying demographic.

TrendsMay 14, 2021
Piece of the Week: Deirdre Featherstone’s Amber Drop Earrings

They’re perfect for welcoming “Springtime in New York.”

Weekly QuizMay 14, 2021
This Week's Quiz
Test your knowledge of jewelry news from the week of May 10-14, 2021.
Take the Quiz
AuctionsMay 13, 2021
The 100-Carat ‘Spectacle’ Diamond Sells for $14M

It sold at the low end of its estimated range at Christie’s jewelry auction in Geneva.

SourcingMay 13, 2021
Fura Gems Launches Membership-Based Marketing Program

The Fura Marketing Council will offer advertising materials, sales training, product promotion initiatives, business consulting, and more.

Brought to you by
A New Golden Age

Gold has had its share of ups and downs over the last 5 decades. Here’s why the metal is having another big comeback.

MajorsMay 13, 2021
Sotheby’s Opens ‘The Emporium’ Retail Store in New York

The company celebrated its debut by collaborating with beauty entrepreneur Gucci Westman for a special edit of luxury items.