Bank Leumi will halt its U.S. diamond and jewelry lending by the end of the year, it confirmed to JCK.
Spokesman Lee Neumann said the bank “will wind down its [U.S. diamond and jewerly] loan portfolio by the end of 2014.… This is in line with a 2012 Leumi Group decision to withdraw from this business in Israel, after which the remaining U.S. lending business represented only a relatively very small portion of the group’s overall loan portfolio.”
Neumann said the bank wanted to “reallocate resources more effectively” and concentrate on “high-tech, real estate, commerce, and other fast-growing industries.”
This is the New York City industry’s second blow in recent months as far as financing goes. Following the recent purchase of Antwerp Diamond Bank, the bank closed its New York City lending office.
News of the bank’s withdrawal was first published on Idex Online.