Pope Francis has warned against financial speculation that prioritises profit over people, resulting in exploitation and social inequalities. Source: Vatican News.
“When finance tramples on people, fuels inequalities, and distances itself from the life of territories, it betrays its purpose” and “becomes uncivilised economy”, he told delegations of Italian banking institutes at an audience yesterday.
In his remarks, the Pope reflected on the ethical responsibilities of finance and its impact on society, emphasising 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 in 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.
The Pope compared these ethical financial practices to some modern banking practices that instead prioritise profit over people’s needs, fostering “uncivilised” 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.
“When finance tramples on people, fuels inequalities, and distances itself from the life of territories, it betrays its purpose. It becomes uncivilised economy.”
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