MAGNITOGORSK, February 17. /TASS/. Russian banks cut their investment arms due to stock market contraction, Central Bank First Deputy Chairman Sergey Shvetsov said Wednesday.
"There’ve been large-scale cuts, with non-performing arms being cut in the first place. The bond market wasn’t affected as it mainly concerned the stock market," he said.
According to Shvetsov, investment bankers can be easily hired, which means Russian lenders could recover momentum in case things get better in the area.
Earlier Chief Executive Officer of Russia’s top lender Sberbank said Sberbank CIB (the bank’s corporate and investment banking arm) reduced units organizing IPOs in 2015. "Amid geopolitical and economic situation surely there were fewer companies to place shares and surely we had to cut units responsible for emerging markets," he said, adding that the company has no plans on further cuts.