Longtime IOR president Jean-Baptiste de Franssu to step down April 28 after leading Vatican bank through a decade of sweeping reform.
Newsroom (26/03/2026 Gaudium Press) After more than a decade at the helm of the Vatican’s financial institution, Jean-Baptiste de Franssu will step down as president of the Institute for Works of Religion (IOR) on April 28, bringing to a close a 12-year tenure defined by deep reform, restored credibility, and a renewed culture of transparency.
The Vatican Bank announced the transition on March 25, confirming that François Pauly, a Luxembourgian executive and member of the IOR’s Board of Superintendence since 2024, will assume the presidency. The appointment, approved by the Commission of Cardinals earlier this year, follows what the institute described as a “carefully managed succession process” to ensure continuity in governance and oversight.
A Decade of Transformation
Appointed in 2014 by Pope Francis, de Franssu presided over one of the most significant periods of change in the Vatican’s financial history. His leadership came at a time when the IOR was emerging from years of scandal and scrutiny surrounding financial mismanagement and opaque practices.
Under his stewardship, the bank embraced international standards of transparency, implemented strict compliance measures, and earned top marks from the Council of Europe’s MONEYVAL watchdog. The IOR under de Franssu became both profitable and trusted — a stark reversal from its earlier image.
“This process has enabled the Institute to achieve strong international credibility and deliver solid financial results,” de Franssu said in a farewell statement. He highlighted the “robust governance framework,” ethical orientation, and institutional discipline that took root during his presidency, allowing the IOR to serve “the pope, the Holy See, and its 12,000 clients” with renewed integrity.
Marked Financial Growth
The IOR’s books reflect this transformation. In its 2024 report, the bank posted a net profit of €32.8 million, up from €30.6 million the previous year. The entire €13.8 million dividend from those earnings was directed by Pope Francis to charitable works — a testament to the bank’s restored mission-driven identity.
Equally remarkable is the IOR’s Tier 1 capital ratio, a key indicator of financial strength. The bank’s 2024 ratio stood at 69.4%, far exceeding global standards and dwarfing even major commercial banks in Europe and the United States.
Beyond financial results, the institute launched two ethical investment indices early in 2025, guiding Catholic investors toward portfolios aligned with moral and social teachings of the Church.
Navigating Crisis and Upholding Integrity
De Franssu’s time in office was not without turbulence. Early in his presidency, he and the IOR’s director, Gianfranco Mammí, drew scrutiny after refusing a €150 million loan request from the Vatican Secretariat of State — a decision that later sparked one of the Holy See’s largest financial scandals and led to the conviction of Cardinal Angelo Becciu. Their stance, rooted in regulatory caution, led to institutional backlash but ultimately underscored their commitment to reform and legality.
In recognition of their efforts, Pope Francis expanded the IOR’s authority, moving to centralize curial financial management under its purview — a decision later eased by Pope Leo XIV in 2025 to grant other dicasteries more fiscal autonomy.
A New Chapter with François Pauly
François Pauly, de Franssu’s successor, brings with him a résumé steeped in European finance. Formerly CEO and chairman of Banque Internationale à Luxembourg, he also serves as chairman of La Luxembourgeoise Group and sits on the Archdiocese of Luxembourg’s finance council. His extensive experience, tempered with an understanding of Catholic institutional contexts, signals a continuation rather than a disruption.
Elected by the board last December and confirmed by the cardinals in January, Pauly’s appointment ensures the IOR’s vision — one of steady stewardship, ethical finance, and accountability — remains intact.
As de Franssu prepares to preside over one last board meeting to approve the 2025 financial statements, he leaves behind a bank profoundly changed in culture and capability. “I now humbly pass this important responsibility to my successor,” he said, concluding an era that reshaped the Vatican’s financial landscape and restored international faith in its operations.
- Raju Hasmukh with files from The Pillar
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