LONDON -- Canada's Bank of Nova Scotia (Scotiabank) is limiting lending by its ScotiaMocatta metals unit as it embarks on a radical restructuring likely to halve the size of the business, sources familiar with the matter said.
Mocatta is the largest financier of the global precious metals supply chain, accounting for some 15-20 percent of lending to clients ranging from refiners and jewelers to carmakers and petrochemicals producers, industry sources say.
While rivals are likely to take on most of Scotia's business, its withdrawal will see the pool of cash available to the industry dwindle further after banks including Barclays, Deutsche Bank and Commerzbank scaled back or exited the market in recent years.
It could also leave smaller clients short of financing options and facing higher borrowing costs.
Ten industry sources told Reuters that ScotiaMocatta was curtailing lending to the physical metals supply chain and would refocus on major corporate clients which have broader relationships with Scotiabank. ...
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https://www.reuters.com/article/us-bank-nova-...uring/scotia... * * *
