Leo XIV modifies Francis' reform: Vatican may also use foreign banks

On Monday, Pope Leo XIV issued a decree revoking the Vatican Bank's (Institute for Religious Works) exclusive right to manage all of the city-state's investments.

With this move, he reversed one of the key financial reforms of his predecessor, Pope Francis, who had ordered in 2022 that the Vatican Bank alone should manage all Vatican assets.

The new decision allows individual Vatican departments to use foreign financial institutions if they deem it “more efficient or convenient.” At the same time, however, the obligation to adhere to the Vatican's uniform investment policy, which had already been drawn up by the supervisory board during Francis' pontificate, remains in place.

The head of the Catholic Church was responding to long-standing reservations on the part of some officials who argued that centralizing investments gave the Vatican Bank too much power and made it difficult for smaller institutions to operate.

The Vatican's financial reputation has been tarnished in recent decades by opaque transactions and cases of corruption, embezzlement, and other crimes. Francis, who led the Church for twelve years, introduced a series of reforms to address these issues.

(reuters, max)