By Lisa Zengarini
Pope Francis has 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 on Monday.
The ethical responsibilities of finance
In his remarks the Pope 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.
Negative modern-time banking practices prioritizing profit
The Pope opposed these ethical financial practices to some banking practices of our time which instead prioritize profit over people’s needs, fostering “uncivilized” economic behaviour.
He 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.
Finance should prioritize human development, not speculation
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”.
Hence the need for banks to avoid speculative and destructive investments such as those that harm the environment and promote wars.
