Medvedev, 42, was nominated by the ruling United Russia party and three other pro-Kremlin parties on Monday afternoon. President Vladimir Putin also threw his substantial political weight behind the chairman of the board of the Gazprom energy giant.
"For the banking sector it is particularly good because Medvedev has dealt with the stock market and financial markets at a professional level," German Gref, head of the state-run Sberbank, said. "It is a chance for us to improve state regulation in this sector and encourage the work of financial institutes."
In view of Putin's high popularity rating and full support of most of the legislature, the president's backing of the nomination is likely to guarantee Medvedev the presidency at next year's presidential election, scheduled for March 2.
Russian stocks soared on Monday on the news of Medvedev's nomination, which is to be officially confirmed at a United Russia congress on December 17.
The Russian Trading System (RTS) index rallied 1.14% to a new high of 2311.81 as of 2:30 p.m. Moscow time (11:30 a.m. GMT). The Moscow Interbank Currency Exchange (MICEX) gained 1.19% to 1936.14.
Gref said he had known Medvedev for 17 years, going on to say that the current first deputy prime minister's work with economic and foreign policy issues would stand him in good stead were he to be elected president.
Medvedev, like Putin, hails from St Petersburg, and worked under the current president in the early 1990s in the city mayor's office. He is widely seen as a pro-business moderate, in contrast to another first deputy premier who had been widely tipped for the presidency, ex-defense minister Sergei Ivanov.
Gref said Medvedev, a trained lawyer, was in charge of national welfare projects in the government, something which had allowed him to gain an insight into a wide spectrum of issues, from agriculture to education.
The Sberbank chief said Putin's support for Medvedev had been welcomed by both Russian and international investors.
"I have already discussed this with many colleagues from the government, as well as from influential business corporations, and I haven't heard a single negative comment," Gref said.
In Gref's opinion, the president's decision on Medvedev was final and conclusive and it was extremely unlikely he would back any other candidate. "Otherwise, there would be a high risk of splitting the vote," he said.
Russian Prime Minister Viktor Zubkov also praised Medvedev's nomination, adding that he had known about it earlier as he had discussed it with the president.
"I have known Dmitry for a long time," he went on. "We worked together in St. Petersburg fifteen years ago, and even then he struck me as a very accomplished individual. This is a very good choice."
