Antwerp Diamond Bank
Encyclopedia
The Antwerp Diamond Bank (ADB) (Banque Diamantaire Anversoise and Antwerpse Diamantbank) is a small, 75-year-old bank that specializes exclusively in serving the diamond and the diamond jewelry sector. It is the second largest diamond bank in the world, after ABN AMRO
's International Diamond and Jewelry Group. In addition to its headquarters in Antwerp, it has offices covering all the major traditional as well as emerging diamond centers such as Antwerp, Dubai
, Geneva
, Hong Kong
, Mumbai
and New York
. Today the ADB group employs approximately 180 people worldwide, of whom 125 work at the head office in Antwerp.
ADB is currently a wholly owned subsidiary of KBC Bank
and can draw, when needed, on its parent's expertise and network. However, the present $5 billion Belgian government bail-out of KBC Bank may include a proviso that KBC is encouraged to sell ADB, though this is neither a demand nor even a priority.
, Société Internationale Forestière et Minière du Congo (Forminière ) and the De Beers
Group. The company was the first financial institution to focus solely and entirely on the needs of the diamond industry; it opened its registered office in the very heart of Antwerp's diamond district.
In 1937, Belgium passed bank reform legislation that allowed the Comptoir Diamantaire Anversois to become a bank. At this point the Comptoir changed its name to the one that it still carries. It also took the opportunity to double its equity base to BEF60 million (approximately 1.5 million euro
s) by bringing in Kredietbank
and Compagnie Financière et Industrielle (Confindus)-Banque de Bruxelles as shareholders.
World War II
The diamond industry in Antwerp was heavily Jewish in its membership and so suffered inordinately during the Nazi
Occupation of Belgium. However, the Bank was proactive. In 1940, before the German invasion, the then managing director and his staff moved their clients' diamond stock, consisting of both loan collateral and goods in custody, then valued at BEF 100 million (circa 2.5 million euros) and shipped them via France to England and ultimately into the United States. When the German occupation forces arrived, they found the safes, safe deposit boxes and accounts empty.
ADB moved its registered office to Brussels, but returned it to Antwerp in 1944.
In 1941, Chemical Bank helped the ADB establish a special agency in New York. After the liberation in 1944 the ADB, whose headquarters had moved to Brussels during the war, returned to Antwerp and its clients.
In 1949 ADB closed the agency in New York City that it had established in 1949.
That same year, Forminière sold its shares in ADB to Société Minière de Bécéka (Sibeka). Then in 1966 Transatlantique sold its shares in ADP, followed some twenty years later by Sibeka in 1985.
However, in the early 80’s, both the bank and the entire diamond banking community worldwide faced serious problems when the international diamond market came under pressure both from developments inside the industry as well in the world economy in general. Still, the support of its shareholders and its customers enabled ADB to maintain its position during the crisis.
In 1999, KBC Bank acquired the shares in ADB that Generale Bank (which had merged with Société Belge de Banque in 1965), and Banque Bruxelles Lambert (the result of the 1975 merger of Banque de Bruxelles and Banque Lambert) had held. KBC thereby became the primary shareholder in ADB, increasing its ownership from 37% to 87%.
That same year ADB opened a representative office in New York. The next year ADB opened a representative office in Hong Kong. The name of ADB's Swiss subsidiary became Diamond Bank (Switzerland).
In 2002, KBC Bank increased its stake in ADB to 99.9%. To do so, KBC bought Henfin Holding, which had represented De Beers on the board of ADB as one of its founding shareholders.
That same year ADB opened a branch in Mumbai, the center for India’s diamond industry. This branch has a staff of about 20 persons. (The industry in Mumbai started out with small diamonds, "cutting the uncuttable". It now has a share of the market for moderately big diamonds, once dominated by Tel Aviv
, and is starting to encroach on cutting big diamonds, Antwerp's forte.)
In 2005, Diamond Bank (Switzerland) opened a representative office in Dubai, UAE.
In 2008, ADB established a subsidiary in Singapore: Antwerp Diamond Bank Asia Pacific. This is a regional headquarters that supports and develop activities in Mumbai, Hong Kong and possible future initiatives in China.
ADB was the first bank to create a commercial paper
program for the diamond industry. The client was an Indian-owned company in Antwerp.
In 2008, Diamond Bank (Switzerland) ceases to operate as a subsidiary and instead becomes a representative office of ADP, which also takes over the responsibility for the Dubai rep office.
In 2009, ADB signed a memorandum of understanding with the Bank of China
.
ABN AMRO
ABN AMRO Bank N.V. is a Dutch state-owned bank with headquarters in Amsterdam. It was re-established, in its current form, in 2009 following the acquisition and break up of ABN AMRO Group by a banking consortium consisting of Royal Bank of Scotland Group, Santander and Fortis...
's International Diamond and Jewelry Group. In addition to its headquarters in Antwerp, it has offices covering all the major traditional as well as emerging diamond centers such as Antwerp, Dubai
Dubai
Dubai is a city and emirate in the United Arab Emirates . The emirate is located south of the Persian Gulf on the Arabian Peninsula and has the largest population with the second-largest land territory by area of all the emirates, after Abu Dhabi...
, Geneva
Geneva
Geneva In the national languages of Switzerland the city is known as Genf , Ginevra and Genevra is the second-most-populous city in Switzerland and is the most populous city of Romandie, the French-speaking part of Switzerland...
, Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
, Mumbai
Mumbai
Mumbai , formerly known as Bombay in English, is the capital of the Indian state of Maharashtra. It is the most populous city in India, and the fourth most populous city in the world, with a total metropolitan area population of approximately 20.5 million...
and New York
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
. Today the ADB group employs approximately 180 people worldwide, of whom 125 work at the head office in Antwerp.
ADB is currently a wholly owned subsidiary of KBC Bank
KBC Bank
KBC Bank N.V. is a Belgian universal multi-channel bank, focusing on private clients and small and medium-sized enterprises. Besides retail banking, insurance and asset management activities , KBC is active in European debt capital markets, domestic cash equity markets and in the field of corporate...
and can draw, when needed, on its parent's expertise and network. However, the present $5 billion Belgian government bail-out of KBC Bank may include a proviso that KBC is encouraged to sell ADB, though this is neither a demand nor even a priority.
Origins
Société Belge de Banque established the Comptoir Diamantaire Anversois in 1934, in partnership with Banque TransatlantiqueBanque Transatlantique
Banque Transatlantique is one of France's oldest private banks. It is unusual among private banks in having a strong focus on serving expatriates, diplomats and international civil servants apart from being the wealth management arm of its parent group...
, Société Internationale Forestière et Minière du Congo (Forminière ) and the De Beers
De Beers
De Beers is a family of companies that dominate the diamond, diamond mining, diamond trading and industrial diamond manufacturing sectors. De Beers is active in every category of industrial diamond mining: open-pit, underground, large-scale alluvial, coastal and deep sea...
Group. The company was the first financial institution to focus solely and entirely on the needs of the diamond industry; it opened its registered office in the very heart of Antwerp's diamond district.
In 1937, Belgium passed bank reform legislation that allowed the Comptoir Diamantaire Anversois to become a bank. At this point the Comptoir changed its name to the one that it still carries. It also took the opportunity to double its equity base to BEF60 million (approximately 1.5 million euro
Euro
The euro is the official currency of the eurozone: 17 of the 27 member states of the European Union. It is also the currency used by the Institutions of the European Union. The eurozone consists of Austria, Belgium, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Luxembourg,...
s) by bringing in Kredietbank
KBC Bank
KBC Bank N.V. is a Belgian universal multi-channel bank, focusing on private clients and small and medium-sized enterprises. Besides retail banking, insurance and asset management activities , KBC is active in European debt capital markets, domestic cash equity markets and in the field of corporate...
and Compagnie Financière et Industrielle (Confindus)-Banque de Bruxelles as shareholders.
World War IIWorld War IIWorld War II, or the Second World War , was a global conflict lasting from 1939 to 1945, involving most of the world's nations—including all of the great powers—eventually forming two opposing military alliances: the Allies and the Axis...
The diamond industry in Antwerp was heavily Jewish in its membership and so suffered inordinately during the NaziNazi Germany
Nazi Germany , also known as the Third Reich , but officially called German Reich from 1933 to 1943 and Greater German Reich from 26 June 1943 onward, is the name commonly used to refer to the state of Germany from 1933 to 1945, when it was a totalitarian dictatorship ruled by...
Occupation of Belgium. However, the Bank was proactive. In 1940, before the German invasion, the then managing director and his staff moved their clients' diamond stock, consisting of both loan collateral and goods in custody, then valued at BEF 100 million (circa 2.5 million euros) and shipped them via France to England and ultimately into the United States. When the German occupation forces arrived, they found the safes, safe deposit boxes and accounts empty.
ADB moved its registered office to Brussels, but returned it to Antwerp in 1944.
In 1941, Chemical Bank helped the ADB establish a special agency in New York. After the liberation in 1944 the ADB, whose headquarters had moved to Brussels during the war, returned to Antwerp and its clients.
1946-82: the good years ... and the crisis
After the war, ADB helped revive the Belgian diamond industry as the industry relocated from Amsterdam to Antwerp. Because of its ties to DeBeers, ADB was a major participant in the financing of rough diamonds at the sights (sales) that DeBeers conducted in London through the Central Selling Organization.In 1949 ADB closed the agency in New York City that it had established in 1949.
That same year, Forminière sold its shares in ADB to Société Minière de Bécéka (Sibeka). Then in 1966 Transatlantique sold its shares in ADP, followed some twenty years later by Sibeka in 1985.
However, in the early 80’s, both the bank and the entire diamond banking community worldwide faced serious problems when the international diamond market came under pressure both from developments inside the industry as well in the world economy in general. Still, the support of its shareholders and its customers enabled ADB to maintain its position during the crisis.
International expansion
In 1982, ADB established the Banque Diamantaire Anversoise (Suisse), a wholly owned subsidiary, in Geneva; the English name for the subsidiary was Antwerp Diamond Bank (Switzerland). This subsidiary focused on financing international diamond transactions and on portfolio management.In 1999, KBC Bank acquired the shares in ADB that Generale Bank (which had merged with Société Belge de Banque in 1965), and Banque Bruxelles Lambert (the result of the 1975 merger of Banque de Bruxelles and Banque Lambert) had held. KBC thereby became the primary shareholder in ADB, increasing its ownership from 37% to 87%.
That same year ADB opened a representative office in New York. The next year ADB opened a representative office in Hong Kong. The name of ADB's Swiss subsidiary became Diamond Bank (Switzerland).
In 2002, KBC Bank increased its stake in ADB to 99.9%. To do so, KBC bought Henfin Holding, which had represented De Beers on the board of ADB as one of its founding shareholders.
That same year ADB opened a branch in Mumbai, the center for India’s diamond industry. This branch has a staff of about 20 persons. (The industry in Mumbai started out with small diamonds, "cutting the uncuttable". It now has a share of the market for moderately big diamonds, once dominated by Tel Aviv
Tel Aviv
Tel Aviv , officially Tel Aviv-Yafo , is the second most populous city in Israel, with a population of 404,400 on a land area of . The city is located on the Israeli Mediterranean coastline in west-central Israel. It is the largest and most populous city in the metropolitan area of Gush Dan, with...
, and is starting to encroach on cutting big diamonds, Antwerp's forte.)
In 2005, Diamond Bank (Switzerland) opened a representative office in Dubai, UAE.
In 2008, ADB established a subsidiary in Singapore: Antwerp Diamond Bank Asia Pacific. This is a regional headquarters that supports and develop activities in Mumbai, Hong Kong and possible future initiatives in China.
ADB was the first bank to create a commercial paper
Commercial paper
In the global money market, commercial paper is an unsecured promissory note with a fixed maturity of 1 to 270 days. Commercial Paper is a money-market security issued by large banks and corporations to get money to meet short term debt obligations , and is only backed by an issuing bank or...
program for the diamond industry. The client was an Indian-owned company in Antwerp.
In 2008, Diamond Bank (Switzerland) ceases to operate as a subsidiary and instead becomes a representative office of ADP, which also takes over the responsibility for the Dubai rep office.
In 2009, ADB signed a memorandum of understanding with the Bank of China
Bank of China
Bank of China Limited is one of the big four state-owned commercial banks of the People's Republic of China. It was founded in 1912 by the Government of the Republic of China, to replace the Government Bank of Imperial China. It is the oldest bank in China...
.