Pope Leo XIV has introduced significant changes to the Vatican’s financial policy by abolishing the Vatican Bank’s (Institute for the Works of Religion, IOR) exclusive right to manage the Holy See’s investments. The Apostolic Letter (motu proprio) announcing this decision was released on Monday by the Vatican Press Office.
The document effectively revises one of Pope Francis’s key financial reforms introduced in 2022, which granted the IOR exclusive authority over all investment assets of the Holy See. The reform had sparked discontent among various Vatican departments, which criticized it for concentrating too much power in the hands of a single financial institution and restricting cooperation with foreign banks.
According to the new decree, Vatican departments should continue to use the Vatican Bank’s services “unless competent authorities deem it more effective or appropriate to turn to financial intermediaries established in other countries.” In practice, this means that the Holy See can now work with international banking institutions.
As Reuters notes, this change came in response to complaints from Vatican officials who argued that the 2022 reform limited the financial autonomy of different Curial offices, including their ability to invest through Italian banks.
The Vatican’s financial reputation has been tarnished over recent decades by scandals involving corruption, embezzlement, and lack of transparency. Since becoming head of the Catholic Church in 2013, Pope Francis has launched extensive financial reforms aimed at improving accountability and oversight.
However, experts say that the excessive centralization of financial management under the IOR slowed down many administrative processes and complicated the work of several departments. Now, under Pope Leo XIV, the Holy See appears to be moving toward a more flexible and open financial policy.
Economic analysts suggest that this decision signals the new Pope’s intent to modernize the Vatican’s financial system, aligning it more closely with international standards. Still, questions of transparency and oversight remain pressing challenges — especially given the Vatican’s and Italy’s long history of financial scandals.
