Daily Management Review

The Bank of Vatican's Profit Rose More than 20 Times


05/25/2015


The bank connects positive results with reduction of operating expenses, successful trade operations with securities, and increase of transparency, thanks to the carried-out reforms.



Reuters
Reuters
The net profit of Vatican Bank in 2014 made 69,3 million euros. Thus, for last year, the profit of the organization grew almost by 24 times. In 2013, the similar indicator made 2,9 million euros. It was reported in the press release of the financial organization on May 25.

Own capital of bank for 2014 decreased to 695 million euros whereas in 2013 it reached 720 million euros. The profit on trade in financial instruments made 36,7 million euros (in 2013 the loss of 16,5 million euros was recorded).

The Bank of Vatican considers that positive results are connected with reduction of operating expenses, successful trade operations with securities, and with increase of transparency and efficiency thanks to the reforms which are carried out by the new management. Since 2013, the bank closed more than 4,6 thousand accounts.

 In 2013, the profit of bank was reduced by 97%, or nearly by 30 times - to 2,9 million euros from 86,6 million euros because of essential write-offs and closing more than 2 thousand customer accounts in the previous year.

The bank of Vatican, also known as institute of religious affairs, in 2013 stepped on a way of radical reforms. Once became the head of Catholic church, Pope Francis ordered to carry out an inspection of activity of bank.

It was supposed that the financial institution will cease to be engaged in all investment operations. Ensuring operations on payment, and also financial consultations for monastic orders, the charitable organizations and employees of Vatican had to become its destiny. The Pope even considered possibility of full closing of the bank, which was accused of money laundering and services of tax evasion.

In particular, in September, 2010, the financial police of Italy withdrew 23 million dollars belonging to Bank of Vatican from the bank account of Credito Artigiano and arrested Ettore Gotti Tedeschi and the CEO of bank Paolo Cipriani on a charge of money laundering. In 2012, the authorities of Italy accused Bank of Vatican of indulgence to money laundering. On May 24, 2012, the director of bank Gotti Tedeski was dismissed.

In 2014, checkout of Bank of Vatican showed that hundreds of millions unaccounted euros lie on accounts of various institutions of the Holy See. The cardinal George Pell told about it in an interview to the British Catholic Herald edition.  

The bank of Vatican, or Institute of religious affairs, was created in the territory of Vatican in 1942 for management of assets of religious persons and establishments. 114 employees work in the bank, its assets are estimated at 7,1 billion dollars. The board of advisers, bank managers, make reports to cardinals and the Pope.

source: ft.com

 






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