This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/world-europe-28221671
The article has changed 5 times. There is an RSS feed of changes available.
Version 2 | Version 3 |
---|---|
Vatican bank chief to step down amid restructure | Vatican bank chief to step down amid restructure |
(about 5 hours later) | |
The president and four non-executive members of the governing board of the Vatican bank are to step down. | |
French financier Jean-Baptiste de Franssu will take over as head of the bank from Ernst von Freyberg as part of a restructuring of the Catholic Church's central government. | |
Pope Francis has sought to stamp out corruption and other abuses at the bank, which handles the Church's funds. | Pope Francis has sought to stamp out corruption and other abuses at the bank, which handles the Church's funds. |
The bank's profits fell last year to 2.9m euros from 86.6m euros in 2012. | |
Ernst von Freyberg was appointed by former Pope Benedict just before his retirement in February 2013 after allegations were made that the Vatican bank had been used by money launderers, | |
However, attempts to create a more transparent banking system for the Catholic Church will continue under new management. | |
"Our ambition is to become something of a model for financial management rather than cause for occasional scandal," the former head of the Catholic Church in Australia, Cardinal George Pell, told reporters. | |
He will head a new economic affairs department at the Vatican, with oversight of all the Vatican's financial dealings and will report directly to the Pope. | |
The cardinal was called to Rome as a result of a year-long attempt to clean up the Vatican's accounts. | |
Balance sheet woes | Balance sheet woes |
The Vatican's precarious financial situation was revealed by the simultaneous publication in Rome of balance sheets for 2013 of the Holy See, of the Vatican City state, a separate entity, and of the Vatican bank, known officially as the Institute for Religious Works (IOR). | The Vatican's precarious financial situation was revealed by the simultaneous publication in Rome of balance sheets for 2013 of the Holy See, of the Vatican City state, a separate entity, and of the Vatican bank, known officially as the Institute for Religious Works (IOR). |
The IOR moves money around the world to finance Catholic missions and provides banking services for the Pope, clergy and religious orders. | |
Alongside the bank's massive drop in profits, the Holy See, the administrative headquarters of the Church, ran up a deficit of 24.2m euros (£19.2m) last year. | Alongside the bank's massive drop in profits, the Holy See, the administrative headquarters of the Church, ran up a deficit of 24.2m euros (£19.2m) last year. |
However Vatican City state, the tiny sovereign enclave in the heart of Rome, which derives a large part of its income from tickets to the Vatican museums, reported a profit of 32.3m euros (£25.7m). | However Vatican City state, the tiny sovereign enclave in the heart of Rome, which derives a large part of its income from tickets to the Vatican museums, reported a profit of 32.3m euros (£25.7m). |
The bank's losses were attributed in part to writedowns of investments made before the bank's reform programme started and when less vigilance was exercised. | The bank's losses were attributed in part to writedowns of investments made before the bank's reform programme started and when less vigilance was exercised. |
The cost of bringing in American anti-money laundering experts to comb through and vet some 18,000 individual accounts at the Vatican amounted to 7.3m euros. | |
In an interview with the BBC in his Vatican bank office overlooking St Peter's Square, I asked Mr von Freyberg if he had discovered many skeletons in the cupboards of the IOR during his term of office. | |
"Only small ones," he replied. "There is much less to the IOR than people think. We are smaller than most small town savings and loans [banks] in the world and the same is true of our skeletons." | "Only small ones," he replied. "There is much less to the IOR than people think. We are smaller than most small town savings and loans [banks] in the world and the same is true of our skeletons." |
"Whatever we found is much smaller than you might believe reading up about the Vatican bank in the media," he added. | "Whatever we found is much smaller than you might believe reading up about the Vatican bank in the media," he added. |
According to the IOR website, the total assets of the Vatican bank amount to 5.9 billion euros. | |
Under Mr von Freyberg's management some 3,000 customer relationships have been terminated, leaving about 15,000 current accounts active. | Under Mr von Freyberg's management some 3,000 customer relationships have been terminated, leaving about 15,000 current accounts active. |