Tax havens and financial tools such as derivatives and credit default swaps are seriously immoral and unfair, the Vatican said Thursday, May 17, describing them as ” activated time bombs” that will especially harm the world’s poorest.
The Vatican Doctrine Office collaborated with the Department of Social Justice in a new report to offer a more solid moral foundation to its repeated call to forge a more ethical global financial system.
Banks should create internal ethical committees to ensure that their decisions favor the common good and not just the “short-sighted selfishness” of corporate balance sheets, according to the document, which was approved by Pope Francis.
It calls for greater regulation of financial products and for universities to teach the next generation of business leaders lessons in ethics, not just profits.
“The recent financial crisis could have been the opportunity to develop a new economy, more attentive to ethical principles, and a new regulation of financial activities that neutralized the predatory and speculative dimensions,” he said.