The Vatican Bank has confirmed the appointment of former Rothschild director François Pauly as the next president of its Board of Superintendence.
The decision, approved by the Cardinals’ Commission in line with the institute’s statutes, will take effect after the board meeting scheduled for April 28, 2026, when the IOR’s financial statements as of December 31, 2025, are due to be approved. Pauly, who has served on the board since 2024, was proposed for the role on December 12, 2025, and received formal approval from the commission on January 28, 2026.
The IOR said the transition follows “a carefully managed succession process conducted over the past twelve months in close collaboration between the Board of Superintendence and the Commission of Cardinals, ensuring continuity in the governance of the Institute”.
Pauly, a Luxembourg national, brings more than three decades of experience in European finance. He began his career in the late 1980s and has held senior roles across banking and insurance, including as chief executive and chairman of Banque Internationale à Luxembourg between 2011 and 2016. He also served briefly in Italy as deputy chief executive of Dexia Crediop in 2002–2003.
More recently, he held senior executive responsibilities at Edmond de Rothschild Bank in Switzerland between June 2021 and 2023, where he served as chief executive and chaired the executive committee during a period of transition following the death of Benjamin de Rothschild. He is currently chairman of La Luxembourgeoise Group and sits on several boards in the financial sector across Luxembourg, Switzerland and Belgium.
His links to Vatican financial structures are not new. Between 2017 and 2021, he served as a member of the board of the Vatican pension fund, and he also sits on the Commission for Economic Affairs of the Archdiocese of Luxembourg.
Pauly will succeed Jean-Baptiste Douville de Franssu, who has led the IOR since 2014 and will remain in office until the April meeting concludes his mandate.
On that period, Douville de Franssu said: “Since 2014, after a long period characterised by management difficulties, the Board of Superintendence, together with the Commission of Cardinals, has guided the IOR through a profound structural transformation. This process has enabled the Institute to achieve strong international credibility and to deliver solid financial results, which will be announced shortly for 2025.”
He added that “the wide-ranging reforms implemented in close and constructive collaboration with the Director General and IOR employees have established a robust governance framework, a culture of transparency, a strong client-service orientation, and well-developed control functions”.
On regulatory standards, he stated: “Today, the Institute’s AML and CFT procedures meet the highest international standards, as recognised by Moneyval, the Council of Europe’s monitoring body, which has awarded the IOR its highest rating.”
Douville de Franssu also highlighted the institute’s operational reach, noting: “The Institute maintains relationships with more than 35 correspondent banks worldwide. In addition, the IOR has developed a transparent, disciplined, and repeatable investment process grounded in Catholic values, with most of its products outperforming their respective benchmarks.”
He concluded: “It has been a profound honour to serve as President during these years. Having faithfully fulfilled the mandate entrusted to the Board by His Holiness Pope Francis, I now humbly pass this important responsibility to my successor.”
The Cardinals’ Commission, which exercises oversight of the IOR, also acknowledged his contribution. Cardinal Giuseppe Petrocchi said: “The Commission of Cardinals is deeply grateful to Jean-Baptiste Douville de Franssu for his dedicated service to the IOR and for the essential contribution he has made to the renewal process of the Institute. His constant dedication and his willingness to serve beyond his original mandate have been very much appreciated over the years.”
Turning to the incoming president, His Eminence added: “We are delighted that François Pauly has been nominated to assume the Presidency of the IOR’s Board of Superintendence at an important step in the Institute’s journey. His commitment to the Board and his extensive professional experience are factors of great significance in the project to consolidate the achievements made and to strengthen the consensus and positive cultural and operational connections that the Institute has established within the financial sector.
“We hope that, under his leadership, the Board of Superintendence continues to effectively support the mission of the IOR in service of the universal Church.”
For decades, the Vatican Bank was synonymous with financial controversy, most notably the collapse of Banco Ambrosiano in the early 1980s and subsequent allegations of mismanagement and lack of oversight. More recent years have seen renewed scrutiny, prompting successive reforms aimed at aligning the Holy See’s financial operations with international norms.
Those efforts have intensified under Pope Francis, whose pontificate has prioritised financial transparency and accountability, including the strengthening of supervisory bodies and cooperation with external evaluators such as Moneyval.
