Pope challenges bankers to invest in hope, not speculation and war

Image Vatican Media

Source: Vatican Media

Pope Francis has once again warned against financial speculation that prioritizes profit over people, resulting in exploitation and social inequalities. "When finance tramples on people, fuels inequalities, and distances itself from the life of territories, it betrays its purpose" and "becomes uncivilized economy," he said.

The Pope was addressing delegations of some Italian Banking Institutes whom he received in audience today.

In his comments Pope Francis reflected on the ethical responsibilities of finance and its impact on society, emphasizing its potential for fostering inclusion and sustainability while cautioning against its detachment from human needs.

Drawing on historical examples, he highlighted how the Church has long contributed to socially conscious banking initiatives, such as the Monti di Pietà, established in Italy the 15th century, to provide credit to those who could not afford it, and the cooperative credit systems created in the late 19th-century inspired by Pope Leo XIII's social Encyclical Rerum Novarum. The intent of these initiatives, he noted, "has always been to give opportunities to those who otherwise would have none", showing that finance can help social well-being.

These ethical financial practices are very different to some banking practices of our time, which prioritize profit over people's needs, fostering "uncivilized" economic behaviour, he said.

The Pope cited multinational companies relocating to exploit cheaper labour, usurious practices benefiting the already privileged and neglecting those in need, and some financial systems collecting funds in one place to invest them elsewhere with the sole aim of increasing their gains.

This disconnect, the Pope warned, leaves vulnerable groups feeling exploited and abandoned.

"When finance tramples on people, fuels inequalities, and distances itself from the life of territories, it betrays its purpose. It becomes uncivilized economy."

Pope Francis praised the Italian institutions present for embodying a more humane approach to banking. Describing finance as the "economy's circulatory system," he insisted that "without adequate financial systems capable of inclusion and promoting sustainability, integral human development would not be possible."

Therefore there is a need for banks to avoid speculative and destructive investments such as those that harm the environment and promote wars.

"Healthy finance does not degenerate into usurious attitudes, pure speculation, or investments that harm the environment and promote wars."

Looking ahead to the upcoming Jubilee of Hope, Pope Francis reiterated his plea for debt forgiveness: "This," he said, "is the condition for generating hope and a future in the lives of many people, especially the poor."

Quoting the Italian priest Don Primo Mazzolari, whose writings on justice and peace in the 1950s anticipated some of the teachings of the Second Vatican Council, Pope Francis concluded by encouraging banks to uphold social justice recalling that they have "great responsibilities to encourage inclusive logic and to support an economy of peace."