The Vatican bank, subject of scandal in recent years, has found that cleaning up its business is good for the bottom line. The bank, formally known as the Institute for the Works of Religion reported a $76 million profit for the past year, more than 23 times its 2013 earnings of $3.15 million.
The surplus will allow the bank to help fund the Vatican's global mission, according to The Wall Street Journal (paywall). "The 2014 profit will allow the bank to turn over 55 million to the Holy See, for charitable purposes at the discretion of the pope, an amount in line with previous years. Last year, the bank drew from its reserves to give the Holy See 54 million," the newspaper said, reflecting figures in Euros. At current exchange rates, the 55-million figure would translate to $59.7 million U.S. dollars.
"IOR media officer Max Hehnberg told Vatican Radio that 2014 was a positive year financially, but 'within the norm' for what is widely known as the Vatican bank," Vatican Radio reported. "The net gains, the Institute said, are the result of a reorganization of the accounts and 'mainly due to an increase in the Net Trading Income from securities and a decline in extraordinary operating expenses.'"
According to The New York Times, "Jean-Baptiste de Franssu, the banks president, said that its long-term strategic plan prioritized the interests of more than 15,000 clients while trying to provide adequate return during a period of ultra-low interest rates in Europe."
Established in 1942, the Vatican bank now restricts its accounts to Catholic Church institutions, individual clergy, employees and retirees of the Vatican, and foreign diplomats accredited to the Holy See. Earlier, it was alleged that some members of the Mafia and at least one former Italian prime minister used the bank to handle transactions out of the gaze of regulators and police.
Pope Benedict began the latest process of reform in 2010, and Pope Francis has stepped up the pace. Gerald Posner, author of the 2015 book, "God's Bankers: A History of Money and Power at the Vatican," told the Deseret News via email the increase in profits proves Pope Francis' reforms are working.
"It is solid proof that adopting long-overdue internationally accepted standards for financial compliance is not at odds with earning profits," Posner said. "It means Francis can push even faster the next round of his cleanup of the Vatican's money matters."
Posner said the Vatican "would be fine" if it didn't have a bank of its own, but said "traditionalists like the prestige" the bank gives. "It's little wonder when a newly elected Francis suggested back in 2013 of possibly doing away with the bank, he was met with such resistance."
The surplus will allow the bank to help fund the Vatican's global mission, according to The Wall Street Journal (paywall). "The 2014 profit will allow the bank to turn over 55 million to the Holy See, for charitable purposes at the discretion of the pope, an amount in line with previous years. Last year, the bank drew from its reserves to give the Holy See 54 million," the newspaper said, reflecting figures in Euros. At current exchange rates, the 55-million figure would translate to $59.7 million U.S. dollars.
"IOR media officer Max Hehnberg told Vatican Radio that 2014 was a positive year financially, but 'within the norm' for what is widely known as the Vatican bank," Vatican Radio reported. "The net gains, the Institute said, are the result of a reorganization of the accounts and 'mainly due to an increase in the Net Trading Income from securities and a decline in extraordinary operating expenses.'"
According to The New York Times, "Jean-Baptiste de Franssu, the banks president, said that its long-term strategic plan prioritized the interests of more than 15,000 clients while trying to provide adequate return during a period of ultra-low interest rates in Europe."
Established in 1942, the Vatican bank now restricts its accounts to Catholic Church institutions, individual clergy, employees and retirees of the Vatican, and foreign diplomats accredited to the Holy See. Earlier, it was alleged that some members of the Mafia and at least one former Italian prime minister used the bank to handle transactions out of the gaze of regulators and police.
Pope Benedict began the latest process of reform in 2010, and Pope Francis has stepped up the pace. Gerald Posner, author of the 2015 book, "God's Bankers: A History of Money and Power at the Vatican," told the Deseret News via email the increase in profits proves Pope Francis' reforms are working.
"It is solid proof that adopting long-overdue internationally accepted standards for financial compliance is not at odds with earning profits," Posner said. "It means Francis can push even faster the next round of his cleanup of the Vatican's money matters."
Posner said the Vatican "would be fine" if it didn't have a bank of its own, but said "traditionalists like the prestige" the bank gives. "It's little wonder when a newly elected Francis suggested back in 2013 of possibly doing away with the bank, he was met with such resistance."