VATICAN CITY
CNBC
By: Deborah Caldwell
Senior Editor, Enterprise
As Pope Francis assumes leadership of the world’s 1.2 billion Catholics, he’s got his work cut out for him on many fronts, not the least of which is the Vatican’s finances.
Last year, a sheaf of documents was leaked by Pope Emeritus Benedict XVI’s former butler in a scandal known as the Vatileaks affair. The documents allegedly showed, for example, tens of millions of dollars in transfers to American dioceses to help pay legal settlements — estimated to have cost the American church more than $3 billion so far — surrounding the priest sex abuse scandals.
During his eight-year tenure, Benedict reportedly made progress toward reforming the Vatican Bank, replacing its president and creating a financial-intelligence committee. But by most accounts, the Vatican Bank still needs greater scrutiny and transparency.
So what is the Vatican Bank, and how is it related to the Catholic Church, and to the finances of Vatican City, a sovereign state? CNBC explains.
What is the Vatican Bank?
It’s definitely not your average bank. Officially called the Institute for the Works of Religion, the Vatican Bank is a privately held firm run by a CEO who reports to a committee of cardinals and the Pope. It offers ATMs with transactions in Latin and boasts a small castle-like headquarters protected by Swiss Guards.
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