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VATICAN BANK
The financial institution of the Holy See that administers
the banking needs of the population and officials of the
Vatican City State. Known officially as the Institutio per
le Opere di Religione (Institute for Works of Religigion,
IOR), the bank is one of the best known of the financial
departments in the Vatican, with the Prefecture for the
Economic Affairs of the Holy See, the Administration of the
Patrimony of the Apostolic See (APSA), and the Council of
Cardinals for the Study of Organizational and Economic
Problems of the Holy See. Aside from fulfilling the ordinary
and day-to-day banking needs of the diplomats. heads of
religious orders, special clients, and others who work in or
are associated Wittl the Vatican, the bank makes important
contributions to the investment strategy of the Holy See.
The bank also has authority over funds that are, as the
title of the bank itself declares, works of religion --the
numerous programs around the world devoted to the care of
souls.
The IOR dates back to the organization founded in1887 by
Pope Leo XIII under the title Administration of Religious
Works, set up to administer funds for religious endeavors.
In 1942, Pope Pius XII replaced this office with the
formally established IOR. Pius. however, changed its overall
mission by charging it with the oversight of all monies, as
well as property, cash, and bonds, that were transferred or
entrusted to the bank for those works of religion; it was
also to administer the funds of the many religious orders of
the Church. The IOR played a significant role in the
safeguarding of the Church's finances during the turbulent
years of the Second World War, Using its international
associations to take precautions against the threat of a
Nazi takeover of the Vatican.
The Vatican Bank is best known today for the sensational
scandals to which its name was attachcd in the late 1970s
and early 1980s. Over the last years, the Vatican has
attempted to repair the damage both to the reputation and
credibility of the the IOR, culminating in the March 1,
1990, reform of the bank at the command of Pope John Paul
II, part of his program of changes pertaining to papal
finances.
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