The purpose of this article is to assess the financial depth of the Russian economy in the context of its main rivalries within the BRIC group. The Russian financial market is evaluated by a set of key indicators that characterize the level of maturity of the national financial system in respect to international standards. This task is implemented through descriptive analysis of extensive international data generated from a time series covering the period 1995–2010. The article demonstrates that, in comparison to other emerging markets, and its closest competitors Brazil, India and China, the financial depth of the Russian economy may be characterized as inadequate. In the Russian financial market potential for growth is combined with exceptionally high risks. Insufficient depth of the financial system undermines its long-term competitiveness and exacerbates its exposure to shocks in the international market.

From a modest start almost 20 years ago, the Russian financial market has emerged as a major force in Eastern Europe and Central Asia. This article offers a retrospective account of the two decades of development of the financial sector in Russia, with an emphasis on the securities market; outlines the main stages in its development; and proposes an assessment of the capital market in comparison to other international markets. We conclude with an overview of the market's performance during the current financial crisis. © 2011 Wiley Periodicals, Inc.

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The article reveals the key imbalances in the financial sector accumulated over the past 30 years. In particular, the inadequacy of the size of the financial sector to the scale of the economy, insufficient financial development (weak monetization, low accessibility of loans and other financial instruments) are analyzed. Other long-term imbalances are discussed (excessively high interest rates, persistently “hot” inflation, “stormy” volatility, overconcentration in the financial sector, excessive influence of state-controlled financial institutions, persistently high capital flight). Provides an overview of other distortions and causes that have led to imbalances in the financial sector

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