Germany’s Deutsche Bank has gradually been shrinking its operations in the last few months after announcing last April that it would be divesting its retail banking unit and reducing the size of its investment banking arm. Reports Friday (Sept. 18) said the bank has just moved closer to those goals.
Deutsche Bank said Friday it will be pulling its corporate banking operations out of Russia.
[bctt tweet=”Deutsche Bank said Friday it will be pulling its corporate banking operations out of Russia.”]
“Deutsche Bank’s Russian corporate finance and markets businesses will now operate from international hubs,” the institution said in a statement, adding that the decision aims to reduce “complexity, costs, risks and capital consumption.”
The company said it plans to finalize the departure by the end of this year, according to reports.
While the company was reportedly one of the top 10 investment banks in the nation, Deutsche’s decision to exit the market did not come as a surprise following previous rumors of the move, as well as several ongoing regulatory troubles in the nation.
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According to reports, Deutsche Bank launched an internal investigation into claims of money laundering by Russian clients. Authorities in the U.S., Germany and Europe are also probing the matter.
But the financial institution isn’t the only bank under fire from regulators. HSBC, RBS and JPMorgan Chase have all taken significant steps to reduce costs and the breadth of their businesses amid investigations.
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