Swisstainability Forum les 29 et 30 juin 2017 à Lausanne

La 7e édition du G21 Swisstainability Forum aura lieu les 29 et 30 juin 2017 à Lausanne, au Swiss Tech Convention Center (EPFL).


Lors de ce rendez-vous annuel incontournable de l’économie et de la durabilité en Suisse, vous pourrez comme à l’accoutumée assister à des conférences et débats, participer à des ateliers, rencontrer et échanger avec les acteurs de la transition.

La finalité de cet événement est de favoriser l’accélération de la transition vers une économie locale plus durable. Ses buts sont de faciliter les rencontres et la collaboration entre les acteurs économiques, politiques, académiques et associatifs ; soutenir les entreprises dans leurs projets innovants durables et enfin présenter les meilleures innovations et projets leaders de demain – le tout dans un esprit prospectif.

Parmi les personnalités invitées seront présents : Cyril Dion, réalisateur et écrivain ; Patrick Viveret, philosophe et essayiste ; Jean-François Noubel, chercheur et formateur en intelligence collective globale ; Dominique Bourg, philosophe et professeur ; Anne-Sophie Novel, journaliste et blogueuse spécialisée dans l’écologie, l’innovation sociale et l’économie collaborative…

À cette occasion, la Chambre de l’économie sociale et solidaire APRÈS-GE, partenaire de NiceFuture depuis plus de dix ans, offre à ses membres une réduction (considérable !) sur les billets. Merci d’écrire à communication@apres-ge.ch pour obtenir votre code promotionnel.

 Le premier jour sera consacré aux nouveaux modèles économiques et leur mise en œuvre avec des exemples concrets : Go for Impact: dessiner l’économie suisse de demain.
Pour le second jour, nous aborderons comment vivre ensemble la transition : La transition ensemble. PROGRAMME COMPLET 2017 EN PDF BIENTÔT DISPONIBLE
DAY 1
jeudi 29 juin 2017
08:00

ACCUEIL. CAFÉS – CROISSANTS, REMISE DES BADGES, PROGRAMME ET MAGAZINE NICEFUTURE

OUVERTURE

Par Barbara Steudler, Fondatrice et directrice de l’association NiceFuture
Barbara Steudler

MOT DE BIENVENUE

Par Jacqueline de Quattro, Conseillère d’état, cheffe du département du territoire et de l’environnement
Jacqueline de Quattro

PRÉSENTATION DE L’APPROCHE DU GLOBAL COMPACT

Par Antonio Hautle, Chef de programme senior et représentant du réseau Global Compact
Antonio-Hautle-g21-2017
Antonio Hautle

ACCUEIL

Par François Vuille, Directeur du développement, Centre de l’Energie, EPFL
François Vuille

DISCOURS INTRODUCTIF

Par René Longet, Vice-président des Services Industriels de Genève (SIG), expert en durabilité
René Longet

VISION GLOBALE DE LA TRANSITION

Par Patrick Viveret, philosophe et essayiste
Patrick Viveret

PRÉSENTATION DU RAPPORT GO FOR IMPACT DE L’OFEV

Par Sibyl Anwander, Cheffe de la division Economie et innovation, OFEV  
sibyl-anwander-g21-2017
Sibyl Anwander

COMMENT CRÉE-T-ON DE L’IMPACT RÉEL DANS LA TRANSITION ?

Comment crée-t-on de l’impact réel dans la transition ? Modérateur : Jean Laville Président de l’association NiceFuture et directeur adjoint de Swiss Sustainable Finance Avec Adrian Aeschlimann, Responsable du domaine coopération et…

Vincent-Simon-g21-2017
Vincent Simon
Marieke-Breugem-g21-2017
Marieke Breugem
jerome-perez-g21-2017
Jérôme Perez
andrian-aeschlimann-g21-2017
Adrian Aeschlimann
Sofia De Meyer
Stéphane Lo Cicero
Aymeric Jung
10:50

CAFÉ, NETWORKING

SESSION LAB A1 – L’INNOVATION POUR L’IMPACT

Dans un esprit collectif, ce débat portera sur la façon de créer de nouvelles solutions pour l’économie et la société de demain. L’ intention du groupe de panélistes est de partager…

Gregory-Lemkine-g21-2017
Gregory Lemkine
eric-plan-g21-2017
Eric Plan
carmen-fankhauser-g21-2017
Carmen Fankhauser
Jean Rossiaud
mathieu-coste-g21-2017
Mathieu Coste
Olivier Ferrari

SESSION LAB A2 – ECOLOGIE INDUSTRIELLE ET ÉCONOMIE CIRCULAIRE, QUEL POTENTIEL ?

L’écologie industrielle et l’économie circulaire se posent aujourd’hui en solutions permettant un usage efficace des ressources, en respectant la capacité de régénération de la planète. Leur mise en œuvre n’est…

Bertrand-Girod-g21-2017
Bertrand Girod
jerome-perez-g21-2017
Jérôme Perez
alpha-drame-g21-2017
Alpha Dramé
Guibert del Marmol
René Longet

SESSION LAB A3 – AUJOURD’HUI TOUT EST BASÉ SUR LA RECHERCHE D’IMPACT. EST-CE LE BON MODÈLE ?

Modérateur : Martial Paris, Directeur stratégie et impact chez Wise Avec Michael Lunt, Fondateur de la Fondation Lunt, Katrin Müff, Directrice de la Business School de Lausanne, Adrian Aeschlimann, Responsable du domaine…

Martial-Paris-g21-2017
Martial Paris
Sophie-Durey-g21-2017
Sophie Durey
michael-lunt-g21-2017
Michael Lunt
andrian-aeschlimann-g21-2017
Adrian Aeschlimann
Katrin-muff-g21-2017
Katrin Muff
Aymeric Jung

SESSION LAB A4 – LE PARTAGE ÉQUITABLE DE LA MARGE BÉNÉFICIAIRE : UN OUTIL INSPIRANT DANS LE DÉVELOPPEMENT DE L’ÉCONOMIE RÉGÉNÉRATRICE ?

Modérateur : Jonathan Normand, Co-fondateur de Codethic & B Lab Europe Suisse Avec Sofia de Meyer, Co-fondatrice d’Opaline Factory, Isabelle Delannoy, Fondatrice de Do Green, Guillaume Morand (Toto), Entrepreneur à succès, créateur du magasin…

guillaume-morand-g21-2017
Guillaume Morand
Jonathan Normand
Sofia De Meyer
Isabelle Delannoy
12:15

LUNCH, NETWORKING

SESSION LAB B1 – COMMENT FÉDÉRER LES ÉCOSYSTÈMES ÉMERGENTS DANS LA TRANSITION À TRAVERS UN VRAI RÉSEAU INCLUSIF ET OPEN SOURCE RICHE POUR CHACUN ?

Le milieu de la transition regorge de bonnes idées, d’initiatives prometteuses et de projets novateurs. Mais souvent, ce fourmillement peine à trouver une véritable cohérence et unité. Ainsi, lors de…

AntoninCalderon-g21-2017
Antonin Calderon
Cedric-Borboen-g21-2017
Cédric Borboën
kuno-spirig-g21-2017
Kuno Spirig
coco-tache-berther-g21-2017
Coco Tâche-Berther
ingrid-fumasoli-g21-2017
Ingrid Fumasoli
Patrick Viveret
René Longet
Christophe Dunand

SESSION LAB B2 – ECONOMIE DU DON, ÉCONOMIE INTÉGRATIVE : COMMENT APPLIQUER CES MODÈLES AU CŒUR DE SA STRUCTURE ?

Avec Dominique Bourg, Philosophe et professeur, Faculté des géosciences et de l’environnement, UNIL, Jean-François Noubel, Chercheur et formateur en intelligence collective globale, Cyril Dion, Acteur de la transition
cyril-dion-21-2017
Cyril Dion
jean-francois-noubel-g21-2017
Jean-François Noubel
Dominique Bourg

SESSION LAB B3 – COMMENT DÉCARBONISER LA FINANCE ?

Modérateur: Catherine Morand, Membre de la direction Swissaid Avec Richard Mesple Directeur de SI-REN SA, Christoph Müller, Président de l’entreprise INrate (TBC), Angela de Wolff, Fondatrice et présidente de Conser (TBC),…

hans-ulrich-stauffer-g21-2017
Hans-Ulrich Stauffer (TBC)
philippe-thalmann-g21-2017
Philippe Thalmann
angela-de-wolff-g21-2017
Angela de Wolff
yvan-maillard-g21-2017
Yvan Maillard Ardenti
Catherine Morand
Richard Mesple

SESSION LAB B4 – LES NOUVEAUX CIRCUITS DE SOLIDARITÉ EN FAVEUR DE LA TERRE AU-DELÀ DU LABEL FAIRTRADE

Modérateur: Jean Laville Président de l’association NiceFuture et directeur adjoint de Swiss Sustainable Finance Avec Eric Favre, Président du laboratoire « Les 3 chênes », Aymeric Jung, Managing Partner chez Quadia Impact…

Josef-Zisyadis-g21-2017
Josef Zisyadis
gilles-brunner-g21-2017
Gilles Brunner
Eric-Favre-g21-2017
Eric Favre
Jean Laville
Aymeric Jung
14:50

PAUSE, NETWORKING

ÉCONOMIE DU DON, 100% D’IMPACTS

Par Jean-François Noubel, Chercheur et formateur en intelligence collective globale
jean-francois-noubel-g21-2017
Jean-François Noubel

QUAND L’ART CRÉE UN IMPACT POSITIF

Interview et défilé de mode par Valérie Pache, Créatrice de mode
valerie-pache-g21-2017
Valérie Pache

VITAVERDURA

Avec Jean-Marc Imhof

DEBAT: LES B CORPS REDÉFINISSENT-ELLES LES ENTREPRISES DU 21ÈME SIÈCLE ? GOING FOR IMPACT

Modérateur : Jonathan Normand, Co-fondateur de Codethic & B Lab Europe Suisse Avec Cédric Juillerat, Directeur général de Codalis, Galina Witting, Directrice générale de Baabuk, Benoit Greindl, Co-fondateur et directeur général Montagne Alternative, Sofia…

galina-witting-g21-2017
Galina Witting
Cedric-Juillerat-g21-2017
Cédric Juillerat
Jonathan Normand
Sofia De Meyer
Benoit Greindl

VISION ÉCONOMIQUE DE LA TRANSITION

Par Christian Arnsperger, Professeur en durabilité et anthropologie économique, Faculté des géosciences et de l’environnement (FGSE), UNIL
Christian Arnsperger

DEBAT: POST-VOTATION: QUEL POTENTIEL POUR LES ÉNERGIES RENOUVELABLES ET LE GAZ NATUREL/BIOGAZ?

Après la votation du 21 mai sur la stratégie énergétique 2050 de la Confédération, quel cadre légal est désormais en place ? Concrètement, que nous sera-t-il possible de faire ou de…

michael-schmid-g21-2017
Michael Schmid
Gilles-Garazi-g21-2017
Gilles Garazi
Marc Volkringer
François Vuille
Adèle Thorens

CLÔTURE DE LA JOURNÉE

Par Marc Chardonnens, Directeur de l’OFEV et Cyril Dion, Réalisateur du film Demain et acteur de la transition
cyril-dion-21-2017
Cyril Dion
Marc Chardonnens
DAY 2
vendredi 30 juin 2017
08:00

ACCUEIL. CAFÉS – CROISSANTS, REMISE DES BADGES, PROGRAMME ET MAGAZINE NICEFUTURE

OUVERTURE

Par Jean Laville, Président de l’association NiceFuture et directeur adjoint de Swiss Sustainable Finance
Jean Laville

CEUX QUI INCARNENT DÉJÀ LE MONDE DONT ON RÊVE

Par Cyril Dion, Réalisateur du film Demain et acteur de la transition
cyril-dion-21-2017
Cyril Dion

LES PROJETS COUP DE CŒUR DE L’ÉQUIPE NICEFUTURE

Par Nour El Mesbahi, Chargé de projets NiceTransition et NiceFuture Magazine, Responsable de la communication de NiceFuture et Valérie Mausner-Léger, Consultante (Maravédis), formatrice, enseignante et conseillère communale, Nyon Suivi de l’équipe…

Nour El Mesbahi
Valérie Mausner-Léger

COUP DE CŒUR POUR LA PERMACULTURE

Par Maxime de Rostolan, Directeur de l’association Fermes d’Avenir
Maxime-de-Rostolan-g21-2017
Maxime de Rostolan

COMMENT REVIVIFIER LES VILLES, LE VIVRE ENSEMBLE ET LES ÉCOQUARTIERS?

Modérateur: Philippe le Bé, journaliste indépendant Avec Jean-Claude Mensch, Maire d’Ungersheim, Sophie Heu Reignier, Cheffe de projet Développement Immobilier chez Losinger Marazzi SA, Evelyne Adam, Fondatrice de Kerterre, Eric Rossiaud, Président de la…

Eric-Rossiaud-g21-2017
Eric Rossiaud
sophie-reignier-g21-2017
Sophie Heu Reignier
Evelyne-Adam-g21-2017
Evelyne Adam
Jean-Claude-Mensch-g21-2017
Jean-Claude Mensch
Philippe Le Bé
10:50

CAFÉ, NETWORKING

SESSION LAB C1- DE LA HIÉRARCHIE À L’ENRICHISSEMENT MUTUEL

Ce lab se veut un mode d’emploi pour pratiquer la gouvernance sur le modèle dit de « l’entreprise libérée ». Modératrice : Geneviève Morand, Entrepreneure réflexif, fondatrice-présidente de la Fondation Muse et fondatrice…

Helena-ter-Ellen-g21-2017
Helena ter Ellen
Robert-Monin-g21-2017
Robert Monin
Jonathan Normand
Sofia De Meyer
Geneviève Morand

SESSION LAB C2 – SOUS QUELLE FORME LA COOPÉRATIVE D’HABITATION DEVIENT-ELLE UN MODÈLE ENTHOUSIASMANT POUR TOUS ?

Modératrice : Sophie Swaton, Chargée de Missions Administratives ou Stratégiques à la Faculté des Géosciences et de l’Environnement de l’UNIL Avec Christophe Brunet, Coopérative Equilibre à Genève,  Olivier Pastor, Co-fondateur de…

David-Weber-g21-2017
David Weber
Eric-Rossiaud-g21-2017
Eric Rossiaud
Olivier-pastor-g21-2017
Olivier Pastor
Sophie Swaton

SESSION LAB C3 – COMMENT ÊTRE DANS L’INDÉPENDANCE ÉNERGÉTIQUE ?

Modérateur : René Longet, Vice-président des Services Industriels de Genève (SIG), expert en durabilité  Avec Richard Mesple, Directeur de SI-REN SA, Monica Serlavos, Assistante diplômée à l’institut de géographie et durabilité de l’UNIL, Dominique…

Monica-Serlavos-g21-2017
Mònica Serlavos
Richard Mesple
René Longet
Dominique Ramuz

SESSION LAB C4 – DÉFENDRE LES DROITS DU VIVANT POUR MIEUX VIVRE ENSEMBLE?

Modératrice : Catherine Morand, Membre de la direction Swissaid Avec Valérie Cabanes, Juriste en droit international et droits de l’Homme, Adèle Thorens, Conseillère nationale, Leila Delarive, Directrice générale et fondatrice de BeCurious TV, Jean…

Valerie-Cabanes-g21-2017
Valérie Cabanes
Leila Delarive
Luc Recordon
Jean Rosset
Catherine Morand
Adèle Thorens
12:15

LUNCH, NETWORKING

CULTIVER SON INTÉRIEUR POUR RAYONNER À L’EXTÉRIEUR

« Soyons le changement que nous voulons voir dans le monde » Gandhi. Vers une société idéale où les outils pour devenir et donner le meilleur de soi seraient enseignés aux enfants…

Denise-Giliand-g21-2017
Denise Kikou Gilliand

DEBAT: PÉDAGOGIE DE LA TRANSITION : PLACE À LA CRÉATIVITÉ!

Modératrice : Sophie Swaton, Chargée de Missions Administratives ou Stratégiques, Faculté des Géosciences et de l’Environnement, UNIL. Avec Evelyne Adam, Fondatrice de Kerterre, Anne-Sophie Novel, Journaliste et blogueuse spécialisée dans l’écologie, l’innovation…

Paola-Ghillani-g21-2017
Paola Ghillani
nicolas-michel-g21-2017
Nicolas Michel (alias K)
antonella-verdiani-g21-2017
Antonella Verdiani
Evelyne-Adam-g21-2017
Evelyne Adam
Sophie Swaton
Anne-Sophie Novel
15:05

PAUSE, NETWORKING

SESSION LAB D1 – LES NOUVEAUX OUTILS POUR TRAVAILLER ENSEMBLE

Modérateur :  Jean Laville Président de l’association NiceFuture et directeur adjoint de Swiss Sustainable Finance Avec Helena Ter Ellen, Linguiste et animatrice, Terr’Eveille, Olivier Pastor, Co-fondateur de l’Université du Nous, Michel Maxime…

Helena-ter-Ellen-g21-2017
Helena ter Ellen
Olivier-pastor-g21-2017
Olivier Pastor
Jean Laville
Michel Maxime Egger
Julie Breukel Michel

SESSION LAB D2 – EXPLORER UNE ORGANISATION ET UNE GOUVERNANCE NOUVELLES

Par Antonella Verdiani, Docteure en sciences de l’éducation, fondatrice du mouvement citoyen le Printemps de l’éducation, Anne Caloustian, Artiste et musicienne
Anne-Caloustian-g21-2017
Anne Caloustian
antonella-verdiani-g21-2017
Antonella Verdiani

SESSION LAB D3 – COMMENT CONSTRUIRE UNE SOCIÉTÉ DAVANTAGE BASÉE SUR L’INTUITION ET L’INSPIRATION?

Animée par Barbara Steudler, Fondatrice et directrice de l’association NiceFuture Avec Evelyne Adam, Fondatrice de Kerterre, Valérie Pache, Créatrice de mode, Denise Kikou Gilliand, Réalisatrice, médium-guérisseuse et coach en créativité, Iris Leroy-Gabella,…

Iris-Leroy-gabella-g21-2017
Iris Leroy-Gabella
Denise-Giliand-g21-2017
Denise Kikou Gilliand
Evelyne-Adam-g21-2017
Evelyne Adam
valerie-pache-g21-2017
Valérie Pache
Barbara Steudler

SESSION LAB D4 – COMMENT S’INSPIRER DES PEUPLES PREMIERS POUR SE RECONNECTER À LA NATURE ?

Modératrice : Frederika Van Ingen, Auteure Avec Thomas Pizer, Président d’Aquaverde, Lorenza Garcia, Artiste et fondatrice de l’Association Navajo France, Anaïs Bajeux, Réalisatrice et photographe, Gert-Peter Bruch, Président de l’ONG Planète Amazone
Gert-Peter-Bruch-g21-2017
Gert-Peter Bruch
Anais-Bajeux-g21-2017
Anaïs Bajeux
lorenza_garcia-g21-2017
Lorenza Garcia
Frederika-van-ingen-g21-2017
Frederika Van Ingen
Thomas Pizer
16:20

PAUSE, NETWORKING

DEBAT: COMMENT DÉVELOPPER UN NOUVEL IMAGINAIRE POUR L’HUMANITÉ DE DEMAIN ?

Modérateur : Barbara Steudler, Fondatrice et directrice de l’association NiceFuture et Jean Laville Président de l’association NiceFuture et directeur adjoint de Swiss Sustainable Finance Avec Frederika Van Ingen, Auteure, Helena Ter Ellen,…

Ernst-Zurcher-g21-2017
Ernst Zürcher
Helena-ter-Ellen-g21-2017
Helena ter Ellen
Frederika-van-ingen-g21-2017
Frederika Van Ingen
valerie-pache-g21-2017
Valérie Pache
Valerie-Cabanes-g21-2017
Valérie Cabanes
Barbara Steudler
Jean Laville

RÉINVENTER UNE VILLE GRÂCE AUX HABITANTS LES PLUS PAUVRES ? OUI, CELA EXISTE : LA CITÉ DE LA BONTÉ !

Par Marianne Sébastien, Fondatrice-présidente de l’association Voix Libres International
Marianne Sébastien

CLÔTURE DE LA JOURNÉE: COMMENT VIVRE EN HARMONIE AVEC LE VIVANT ?

Réponse par l’ensemble des orateurs modérée par Barbara Steudler, Fondatrice et directrice de l’association NiceFuture  
Barbara Steudler
Programme sous réserve de modifications
DAY 1
jeudi 29 juin 2017

ATELIER REFFNET: AMÉLIORER LA PERFORMANCE ENVIRONNEMENTALE DES PMES ROMANDES, C’EST POSSIBLE ET ÇA SE PASSE MAINTENANT !

Réduire la dépendance de la Suisse aux matières premières constitue un enjeu majeur permettant en outre aux entreprises d’augmenter leur performance environnementale et leur compétitivité. C’est pour aider les entreprises à…

Denis-bochatay-g21-2017
Denis Bochatay
Sarra-Harbi-g21-2017
Sarra Harbi
Julien Boucher

TRANSITIONS DIGITALES ET TRANSFORMATIONS SOCIÉTALES

La consommation, les critères de décisions des organisations humaines sur les plans économiques et financiers péjorent la planète, les ressources naturelles, et les humains. Ceci est renforcé par une hypothèse…

Raymond-Morel-g21-2017
Raymond Morel
Philipp-Koenig-g21-2017
Philipp Koenig

QUELS SONT LES RISQUES LIÉS À L’EAU?

Remarque pour le public: ce débat se déroulera en anglais. Les chaines d’approvisionnement globales font que les problèmes d’eaux a priori locaux et situés dans des pays lointains deviennent des…

Monika-Tobler-g21-2017
Monika Tobler
Sandra-Bruhlmann-g21-2017
Sandra Brühlmann
Jean-Baptiste-Bayart-g21-2017
Jean-Baptiste Bayart
Jose-Luis-Carrasco-g21-2017
José-Luis Carrasco
carlo-galli-g21-2017
Carlo Galli
Soraya-Kohler-g21-2017
Soraya Kohler
Marieke-Breugem-g21-2017
Marieke Breugem
DAY 2
vendredi 30 juin 2017

GÉRER LES CONFLITS DE LA TRANSITION : LE PARDON COMME ACTEUR DE RELIANCE

Les Cercles de Pardon font vivre un rituel transpersonnel de guérison du coeur. Ils favorisent la libération des rancunes, jugements (de soi comme des autres) et haines parfois anciennes. Ils…

Natacha-Sapey-Divine-g21-2017
Natacha Sapey-Divine

MARCHÉS PUBLICS DURABLES: UN PETIT EFFORT QUI PEUT RAPPORTER GROS

Innovation, exemplarité vis-à-vis du consommateur, écologisation des marchés, prévention des impacts, économies financières: les retombées positives des marchés publics durables ne manquent pas. Encore mal connus, leurs multiples atouts seront…

Martin-Beyeler-g21-2017
Martin Beyeler
Amelie-Dupraz-g21-2017
Marie-Amélie Dupraz Ardiot
yvan-maillard-g21-2017
Yvan Maillard Ardenti

DÉBAT SUR LA MOBILITÉ INDIVIDUELLE DURABLE

Débat sur la mobilité individuelle durable
Programme en cours d’élaboration
APRÈS-GE sera en particulier représentée lors de deux “Session LAB” :

Jeudi 29 juin à 13h50 :
Comment fédérer les écosystèmes émergents dans la transition à travers un vrai réseau inclusif et open source riche pour chacun ?

Retrouvez l’ensemble du programme sur le site www.g-21.ch. Au plaisir de vous retrouver à l’occasion de cet événement incontournable aux nombreuses conférences, débats et ateliers ; une opportunité d’aller à la rencontre de personnalités dont la durabilité est une vocation !

http://desiebenthal.blogspot.ch/2011/05/pour-un-capital-social-local-le.html

Les visiteurs peuvent désormais consulter mon blog via une connexion chiffrée en se rendant sur https://desiebenthal.blogspot.com.

Invitations 2017
In English

en français:

Avec mes meilleures salutations

Nouvelle adresse: 23, Av. Edouard Dapples, CH 1006 LAUSANNE. SUISSE

Tél: international ++ 41 21 616 88 88

Mobilisation générale: épargnes, retraites…  volées légalement ! 

http://desiebenthal.blogspot.ch/2015/12/projet-de-loi-dapplication-de-monnaie.html

http://desiebenthal.blogspot.ch/2015/12/swiss-positive-money-social-credit.html

Donner à chacun ce qui lui est dû par un dividende social à tous!

à faire circuler largement, merci, le monde est déjà meilleur grâce à ce simple geste de solidarité.

Procédure de consultation too big to fail

Procédure de consultation relative à la loi fédérale sur le calcul de la réduction pour participation en cas d’émission d’instruments dans le cadre du régime des établissements financiers trop grands pour être mis en faillite…

1 Département fédéral des finances DFF 9 Juin 2017 Procédure de consultation relative à la loi fédérale sur le calcul de la réduction pour participation en cas d’émission d’instruments dans le cadre du régime des établissements financiers trop grands pour être mis en faillite Rapport explicatif 2 Condensé Les banques, les groupes financiers et les conglomérats financiers à dominante bancaire (ci-après banques) peuvent être soumis aux dispositions prudentielles du régime des établissements financiers trop grands pour être mis en faillite. Les prescriptions prudentielles peuvent les contraindre à émettre des CoCo, des write-off bonds ou depuis peu des bail-in bonds à titre d’instruments TBTF (Too Big To Fail, établissements financiers trop grands pour être mis en faillite) afin de renforcer leur base de capital propre ou de remplir les exigences en matière de fonds supplémentaires destinés à absorber les pertes. La présente innovation a pour objet la situation particulière des banques en relation avec la législation régissant l’impôt sur le bénéfice. Selon les instructions de l’Autorité fédérale de surveillance des marchés financiers (FINMA) l’émission d’instruments TBTF doit être effectuée par la société mère des banques d’importance systémique à partir du 1er janvier 2020 au plus tard. Dans ce contexte, la société mère transfère en règle générale les fonds provenant des instruments TBTF au sein du groupe aux banques opérationnelles ou aux autres sociétés du groupe qui ont besoin d’un renforcement de leur base de capital propre ou de fonds supplémentaires destinés à absorber les pertes. Pour la société mère, l’émission des instruments TBTF et le transfert des fonds qui en proviennent à ses banques opérationnelles se traduisent par une plus forte charge d’impôt sur le bénéfice sous la forme d’une imposition du rendement des participations. L’augmentation de la charge fiscale conduit donc à une diminution du capital propre, ce qui est contraire aux objectifs de la législation relative aux établissements financiers trop grands pour être mis en faillite. L’augmentation de la charge fiscale est due au calcul de la réduction pour participation. La réduction pour participation est un pourcentage de réduction de l’impôt sur le bénéfice dû dont l’application vise à éviter sur le plan économique une augmentation de la charge fiscale grevant le rendement des participations. Si la réduction pour participation diminue à la suite de l’émission d’instruments TBTF et du transfert des fonds, c’est en particulier en raison de deux facteurs: l’augmentation des frais de financement et l’augmentation de l’ensemble des actifs. La baisse du pourcentage entraîne une augmentation de l’impôt sur le bénéfice dû. Afin d’empêcher l’augmentation de la charge d’impôt sur le bénéfice, le projet pré- voit que les deux facteurs susmentionnés ne soient pas pris en compte lors du calcul de la réduction pour participation. L’innovation doit être limitée à ce qui est nécessaire, afin que, après l’émission d’instruments TBTF et le transfert des fonds qui en proviennent, la charge fiscale grevant le rendement des participations des sociétés mères reste identique à ce qu’elle aurait été sans l’émission d’instruments TBTF. Étant donné que les dispositions prudentielles pourraient également nécessiter ultérieurement l’émission d’instruments TBTF dans des banques d’importance non systémique, la modification légale proposée vaut également pour ces établissements. Sans modifications légales, il se produirait une augmentation de l’impôt sur le bénéfice susceptible de générer à long terme, pour l’impôt fédéral direct et les impôts cantonaux, des recettes supplémentaires pouvant atteindre plusieurs centaines de millions de francs par an. L’adaptation proposée empêchera cette augmentation d’impôt potentielle. 3 1 Contexte Les dispositions de la loi du 8 novembre 1934 sur les banques (LB)1 applicables aux établissements financiers trop grands pour être mis en faillite (too big to fail, TBTF) visent à empêcher que, en cas de crise, des banques, des groupes financiers ou des conglomérats financiers à dominante bancaire2 (ci-après banques) soumis à l’Autorité fédérale de surveillance des marchés financiers (FINMA) ne doivent être sauvés par l’argent des contribuables. À cet effet, ces établissements doivent remplir certaines exigences en matière de fonds propres et de fonds supplémentaires destinés à absorber les pertes. Ces dispositions sont en vigueur depuis le 1er mars 2012. Depuis cette date, les banques peuvent émettre des emprunts à conversion obligatoire (CoCo) et des emprunts assortis d’un abandon de créances (write-off bonds) qui sont pris en compte en tant que capital propre réglementaire3 . Depuis le 1er juillet 2016, il est en outre possible d’émettre des instruments appelés bail-in bonds (obligations de renflouement interne)4 . Du point de vue de la législation relative à la surveillance par la FINMA et conformément à la norme internationale en matière de TLAC applicable aux banques d’importance systémique mondiale, l’émission de ces trois instruments TBTF doit être effectuée, à partir du 1er janvier 2020 au plus tard, par l’entremise de la société mère de la banque d’importance systémique5. Dans le cadre d’une révision de la loi du 13 octobre 1965 sur l’impôt anticipé (LIA)6, l’exonération de l’impôt anticipé qui avait déjà été introduite pour une durée limitée pour les intérêts de CoCo et de write-off bonds a été prorogée sans interruption jusqu’au 31 décembre 2021 (art. 5, al. 1, let. g, LIA), et une exonération analogue de l’impôt anticipé a été créée au 1er janvier 2017 pour les intérêts de bail-in bonds (art. 5, al. 1, let. i, LIA). Par la même occasion, l’exonération des droits de timbre a été prorogée pour les CoCo convertis en capital propre et introduite au 1er janvier 2017 pour les bail-in bonds (art. 6, al. 1, let. l et m, de la loi du 27 juin 1973 sur les droits de timbre [LT]7 ). Ces mesures garantissent que les banques puissent émettre ces instruments en Suisse à des conditions compétitives. Pendant les débats parlementaires consacrés à cette révision, les milieux bancaires ont signalé qu’il fallait s’attendre à une charge supplémentaire d’impôt sur le bénéfice pour les sociétés mères de banques qui procèdent à l’émission des nouveaux instruments TBTF. Le Conseil fédéral a chargé le Département fédéral des finances (DFF) d’élaborer un projet destiné à la consultation en vue de modifier le mécanisme de la réduction pour participation dans le cadre du renforcement à l’échelon cantonal et fédéral du régime des établissements financiers trop grands pour être mis en faillite. En matière d’impôt sur le bénéfice, ce projet doit éliminer les incidences des instruments TBTF sur la réduction pour participation des sociétés mères de banques. 1 RS 952.0 2 Pour la définition des groupes financiers et des conglomérats financiers, cf. glossaire de l’annexe 2. 3 Pour la définition des CoCo et des write-off bonds, cf. glossaire de l’annexe 2. 4 Pour la définition des bail-in bonds, cf. glossaire de l’annexe 2. 5 Pour l’échelonnement temporel instauré par la FINMA, cf. ch. 2.1; font actuellement partie des banques suisses d’importance systémique mondiale l’UBS et le CS, cf. ch. 2.1. 6 RS 642.21; RO 2016 3451; FF 2015 6469 7 RS 641.10 4 2 Situation juridique actuelle 2.1 Droit de la surveillance Les termes techniques utilisés dans le présent chapitre ne sont expliqués que dans la mesure du nécessaire. En cas de besoin, on peut se référer aux informations supplé- mentaires qui figurent dans le glossaire de l’annexe 2. 2.1.1 Instruments TBTF À l’occasion de l’introduction du régime des établissements financiers trop grands pour être mis en faillite, les CoCo et les write-off bonds ont été repris dans la loi sur les banques au 1er mars 2012. Les CoCo sont des emprunts qui sont convertis en capital propre (le plus souvent des actions) de la banque concernée lorsque se produit un événement déterminé appelé trigger. Lorsqu’un événement déterminé se produit, les write-off bonds ne sont quant à eux pas convertis en capital propre, mais amortis. Ces instruments permettent de remplir les exigences réglementaires en matière de fonds propres. Depuis le 1er juillet 2016, il existe en outre la possibilité d’émettre des bail-in bonds pour remplir les exigences en matière de fonds supplémentaires destinés à absorber les pertes. Les bail-in bonds sont des obligations d’emprunt qui, en cas (de risque) d’insolvabilité, peuvent être réduites ou converties en capital propre dans le cadre d’une procédure d’assainissement ordonnée par la FINMA. 2.1.2 Émetteurs d’instruments TBTF Au regard du droit de la surveillance, tant les banques d’importance systémique que les banques d’importance non systémique peuvent émettre les trois types d’instruments TBTF. En Suisse, cinq banques d’importance systémique sont actuellement soumises à des dispositions prudentielles. À l’heure actuelle, l’UBS et le CS sont considérés comme des banques d’importance systémique actives au niveau international (ci-après banques d’importance systémique mondiale). La Banque cantonale de Zurich, le groupe Raiffeisen et PostFinance sont considérés comme non actifs au niveau international (ci-après autres banques d’importance systémique). Toutes les autres banques sont dorénavant qualifiées de banques d’importance non systémique. Cette distinction est importante, car il peut en résulter, du point de vue prudentiel, l’obligation d’émettre les instruments TBTF exclusivement à l’échelon de la société mère et non directement à l’échelon d’une société du groupe. La pratique détaillée est la suivante: Jusqu’au 31 décembre 2016, les banques d’importance systémique mondiale pouvaient émettre des instruments TBTF par l’entremise de sociétés à but unique (ciaprès entités à vocation spéciale ou EVS) situées à l’étranger. Si la banque a transfé- ré en Suisse la totalité des bail-in bonds émis à l’étranger pour la fin de mars 2017, la FINMA autorise encore l’émission de nouveaux instruments TBTF par l’entremise d’une entité à vocation spéciale suisse jusqu’à l’entrée en vigueur de la présente innovation, mais jusqu’au 31 décembre 2019 au plus tard. Par la suite, l’émission ne sera autorisée que par l’entremise de la société mère. En règle générale, la société mère transfère les fonds provenant des instruments TBTF aux banques opérationnelles ou aux autres sociétés du groupe (ci-après banques opérationnelles) qui ont 5 besoin de renforcer leur base de capital propre ou doivent détenir des fonds supplé- mentaires destinés à absorber les pertes. Selon la pratique actuelle de la FINMA, les autres banques d’importance systé- mique émettent déjà leurs instruments TBTF exclusivement par l’entremise de la société mère. Pour elles, il n’est prévu aucune réglementation transitoire du type de celle qui s’applique aux banques d’importance systémique mondiale jusqu’à l’entrée en vigueur de la présente innovation, mais jusqu’au 31 décembre 2019 au plus tard. Elles transfèrent elles aussi les fonds provenant des instruments TBTF à des banques opérationnelles. En matière de droit de la surveillance, les banques d’importance non systémique n’ont aucune obligation d’émettre les instruments TBTF par l’entremise de la société mère. À l’heure actuelle, les entreprises d’autres branches ne sont soumises à aucune règle comparable aux exigences qui s’appliquent aux instruments TBTF dans le secteur bancaire. Dans les pages qui suivent, le présent rapport part du principe que l’émission d’instruments TBTF n’est autorisée que si elle est effectuée par la société mère d’une banque d’importance systémique. 2.2 Droit fiscal 2.2.1 Bases La société mère d’une banque d’importance systémique inscrit les fonds provenant de l’émission d’instruments TBTF à son bilan en tant que capitaux de tiers. Elle comptabilise les intérêts versés aux investisseurs en tant que charges, qu’elle peut, en vertu du principe selon lequel le bilan commercial est déterminant, déduire de l’assiette de l’impôt sur le bénéfice pour les impôts directs. Si l’on se réfère uniquement à ce processus, le bénéfice de la société mère diminue. La société mère transfère les fonds provenant de l’émission d’instruments TBTF aux banques opérationnelles du groupe ayant besoin de capitaux propres supplémenbilan bilan autres actifs capital propre autres capitaux de tiers capital propre dette résultant du transfert autres capitaux de tiers autres actifs 2. transfert à la banque opérationnelle en tant que prêt CoCo compte de résultats charges d’intérêts revenus d’intérêts intérêts versés par la société mère aux investisseurs pour les CoCo Représentation simplifiée de l’émission de CoCo par une société mère et de leur transfert à la banque opérationnelle. Pour les write-off bonds et les bail-in bonds, le schéma est analogue. investisseurs société mère banque opérationnelle créance résultant du transfert 2. 1. intérêts pour prêt versés par la banque opérationnelle à la société mère en raison du transfert fonds résultant du transfert 1. CoCo remis aux investisseurs et comptabilisés dans les capitaux de tiers 6 taires ou de fonds destinés à absorber les pertes. Dans son bilan, la société mère inscrit ce processus en tant qu’actif (créance envers la banque opérationnelle). Pour le transfert des fonds, la banque opérationnelle verse à la société mère un intérêt calculé au taux usuel du marché. La société mère comptabilise cet intérêt en tant que revenu, ce qui entraîne une augmentation correspondante de l’assiette de l’impôt sur le bénéfice. Pour la société mère, une éventuelle différence entre les charges d’intérêts (intérêts versés aux investisseurs) et les revenus d’intérêts (intérêts versés par la banque opérationnelle) peut se traduire par une marge d’intérêt positive. Si l’on se réfère uniquement à ce processus, le bénéfice de la société mère augmente. 2.2.2 Définition et calcul de la réduction pour participation Une fois que le bénéfice net imposable d’une société de capitaux ou d’une société coopérative a été déterminé, il est multiplié par le tarif/taux d’impôt. Ce calcul donne en principe l’impôt sur le bénéfice dû. Sur cet impôt sur le bénéfice, la société de capitaux ou la société coopérative peut opérer la réduction pour participation en pour-cent. Il en résulte la charge fiscale effective (montant de l’impôt). Cette méthode de calcul visant à diminuer l’impôt sur le bénéfice par la réduction pour participation est également appelée exonération indirecte du rendement des participations. À l’étranger, la méthode la plus courante est l’exonération directe du rendement des participations, c’est-à-dire son exclusion de l’assiette fiscale (cf. ch. 5). Conformément aux art. 69 et 70 de la loi du 14 décembre 1990 sur l’impôt fédéral direct (LIFD)8 et à l’art. 28, al. 1 à 1ter, de la loi du 14 décembre 1990 sur l’harmonisation des impôts directs des cantons et des communes (LHID)9, la réduction pour participation est calculée pour l’essentiel comme suit:  rendement brut des participations  ./. frais d’administration  ./. frais de financement  = rendement net des participations  par rapport au bénéfice net total  = réduction pour participation [%]  Le rendement brut des participations ressort des comptes annuels.  Les frais d’administration correspondent aux coûts administratifs effectifs de la société de capitaux ou de la société coopérative ou à un forfait de 5 % du rendement brut des participations.  Sont réputés frais de financement les intérêts passifs ainsi que les autres frais qui 8 RS 642.11 9 RS 642.14 Représentation schématique du fonctionnement de la réduction pour participation bénéfice net de l’entreprise tarif/taux d’impôt (en règle générale 8,5 %) impôt sur le bénéfice Confédération ./. réduction pour participation [%] montant d’impôt x = = 7 Conséquence de l’émission de CoCo et de leur transfert sur le calcul de la réduction pour participation de la société mère bilan bilan autres actifs capital propre autres capitaux de tiers capital propre dette résultant du transfert autres capitaux de tiers autres actifs 2. transfert à la banque opérationnelle en tant que prêt CoCos compte de résultats charges d’intérêts revenus d’intérêts intérêts versés par la société mère aux investisseurs pour les Coco Pour les write-off bonds et les bail-in bonds, le schéma est analogue. investisseurs société mère banque opérationnelle créance résultant du transfert 2. 1. intérêts pour prêt versés par la banque opérationnelle à la société mère en raison du transfert fonds résultant du transfert 1. CoCo remis aux investisseurs et comptabilisés dans les capitaux de tiers augmentation de l’ensemble des actifs sont économiquement assimilables à des intérêts passifs. Les frais de financement totaux sont déduits proportionnellement. Le rapport entre les participations et l’ensemble des actifs de la société de capitaux ou de la coopérative est déterminant.    Le rendement net des participations ainsi déterminé est mis en rapport avec le bénéfice net total de la société de capitaux ou de la coopérative. Il en résulte la réduction pour participation en pour-cent. La dette fiscale calculée est diminuée de la réduction pour participation en pourcent. 2.3 Conséquences des instruments TBTF sur la réduction pour participation L’émission d’instruments TBTF par l’entremise de la société mère et le transfert des fonds au sein du groupe ont des conséquences sur la réduction pour participation dont bénéficie la société mère, cela dans deux domaines: 1. Augmentation des frais de financement: pour la société mère de banques, les intérêts d’instruments TBTF qui sont versés aux investisseurs constituent des frais de financement. En principe, plus les frais de financement sont élevés, plus la réduction pour participation est basse (). 2. Augmentation de l’ensemble des actifs: étant donné que, dans son bilan, la société mère inscrit le transfert des fonds issus d’instruments TBTF à la filiale en tant que créance, l’ensemble de ses actifs augmente (). En principe, plus l’ensemble des actifs est élevé par rapport aux participations, plus les frais de financement devant être pris en compte sont bas. L’augmentation des frais de financement et la diminution de la part proportionnelle des participations dans l’ensemble des actifs réduisent le rendement net des participations () et donc aussi la réduction pour participation ()10. En fin de compte, la 10 Voir à ce sujet l’exemple de calcul figurant à l’annexe 1. 8 réduction pour participation est donc diminuée. En matière d’impôt sur le bénéfice, il en résulte pour la société mère une charge fiscale plus élevée qui n’est pas due à une augmentation du bénéfice au sens du droit commercial. Cette charge fiscale plus élevée résulte exclusivement du système de l’exonération indirecte du rendement des participations et du calcul de la réduction pour participation. De plus, une éventuelle marge d’intérêt peut également influencer le montant de la réduction pour participation: en émettant des instruments TBTF et en transférant les fonds issus de ces instruments, la société mère peut réaliser une marge d’intérêt positive. Cette dernière correspond à la différence entre les intérêts versés aux investisseurs (charges d’intérêts/frais de financement) et les revenus d’intérêts qu’elle reçoit de la banque opérationnelle. La marge d’intérêt augmente l’assiette de l’impôt sur le bénéfice et influence de ce fait le bénéfice net. Cela se traduit par une modification du rapport entre le rendement net des participations et le bénéfice net total (). Étant donné que c’est dans les sociétés mères des banques d’importance systémique mondiale que la part du rendement des participations par rapport au bénéfice net est la plus élevée, c’est auprès d’elles que l’exonération indirecte du rendement des participations et la diminution de la réduction pour participation ont les consé- quences les plus fortes. Dans les faits, cela se traduit par une imposition indésirable des revenus de dividendes de ces sociétés mères. Dans les sociétés mères des autres banques d’importance systémique, l’effet fiscal peut être moindre. Ces sociétés mères peuvent dans certains cas disposer également d’autres bénéfices opérationnels importants non soumis à la réduction pour participation. De ce fait, la part du rendement des participations est moins importante chez elles. La réduction pour participation, qui est en soi plus basse, est donc également moins influencée par les instruments TBTF. Pour cette raison, l’émission d’instruments TBTF et le transfert des fonds par l’entremise d’entités à vocation spéciale ne se répercutent pas sur la charge fiscale dont elles sont grevées. Les entités à vocation spéciale de ce genre ne disposent pas de participations et donc pas non plus de rendements de participations, si bien qu’il est habituel que la réduction pour participation se monte d’emblée à 0 %. Le recours à une entité à vocation spéciale aurait donc pour effet de résoudre le problème de droit fiscal relatif au calcul de la réduction pour participation, mais il n’est pas admissible sous l’angle prudentiel (cf. ch. 2.1). 3 Nouvelle réglementation proposée Le projet prévoit que, lors du calcul de la réduction pour participation des sociétés mères de banques d’importance systémique, ne soient pas pris en compte  les frais de financement (intérêts versés aux investisseurs; cf. ch. 2.3 ) assumés lors de l’émission d’instruments TBTF et  les fonds inscrits à l’actif transférés au sein du groupe (cf. ch. 2.3 ). L’assiette de l’imposition au sens des art. 57 à 67 LIFD reste inchangée. Bien qu’une marge d’intérêt positive résultant du transfert des fonds (cf. ch. 2.3) influence également le montant de la réduction pour participation, aucune correction n’est effectuée à cet égard. L’innovation doit être limitée à ce qui est nécessaire (cf. à ce sujet le ch. 4). Du point de vue du Conseil fédéral, l’adaptation du calcul de la réduction pour participation qui est proposée assure une mise en œuvre cohérente des objectifs de la 9 législation TBTF. Pour des raisons d’égalité de traitement, les banques d’importance non systémique sont également concernées par cette innovation (cf. ch. 4). Cependant, étant donné que la majeure partie des instruments TBTF est émise par des banques d’importance systémique, les répercussions de l’innovation proposée touchent essentiellement la charge fiscale de ces dernières. 4 Justification de la nouvelle réglementation proposée Grâce à la nouvelle réglementation, l’émission d’instruments TBTF ne change en principe rien à la charge fiscale grevant le rendement des participations dans les sociétés mères de banques11. La situation prudentielle particulière des banques a déjà été prise en considération lors de la révision de l’impôt anticipé et des droits de timbre (cf. ch. 1). Cependant, on a alors simplement créé la possibilité d’émettre des instruments TBTF sans incidences en matière d’impôt anticipé et de droit de timbre d’émission. La présente innovation vise à ce qu’il soit désormais aussi possible de détenir des instruments TBTF et de transférer au sein du groupe les fonds qui en proviennent avec aussi peu d’incidences que possible sur l’impôt sur le bénéfice, conformément aux objectifs de la législation TBTF. Les exigences prudentielles que doivent remplir les banques sont en lien avec le fait que celles-ci ont un ratio de capital propre nettement plus bas que les entreprises du secteur non bancaire. Dans un premier temps, le durcissement des exigences réglementaires renforce la base de capital propre des banques. Cependant, le fait que la réduction pour participation constitue une forme d’exonération indirecte, combiné à l’obligation prudentielle d’émettre les instruments TBTF par l’entremise de la société mère, se traduit par une augmentation de la charge d’impôt sur le bénéfice. Cette charge fiscale plus élevée réduit le bénéfice après impôts de cette société mère. Une baisse du bénéfice après impôts se fait à la charge des actionnaires, qui peuvent s’attendre à une distribution plus faible, et aux dépens de la constitution du capital propre, car la possibilité de constituer des réserves issues du bénéfice est moindre. Même si les entreprises d’autres branches ont également besoin d’une solide base de capital propre, elles ne peuvent être contraintes à procéder à une émission par l’entremise de la société mère. Elles peuvent choisir d’autres dispositifs, par exemple l’émission par l’entremise d’une société opérationnelle ou d’une entité à vocation spéciale (cf. ch. 2.3), qui empêchent toute augmentation de l’impôt sur le bénéfice. La nouvelle réglementation vise à empêcher une augmentation indésirable de la charge fiscale et à garantir ainsi les objectifs de la législation TBTF. Les normes prudentielles des dispositions TBTF sont dans l’intérêt public. Elles visent à garantir que, en cas de crise, des banques d’importance systémique ne doivent pas être sauvées par le contribuable. Cet intérêt public justifie la non-prise en compte des instruments TBTF lors du calcul de la réduction pour participation. Cela ne s’applique cependant pas à une éventuelle marge d’intérêt découlant du transfert des moyens émis (cf. ch. 2.3) par la société mère. Toute marge d’intérêt réalisée par une société a des conséquences sur le calcul de la réduction pour participation. Pour cette raison, les marges d’intérêt positives résultant du transfert des instruments TBTF sont traitées de la même manière que les autres revenus d’intérêts. Elles sont donc prises en compte lors du calcul de la réduction pour participation. 11 Voir à ce sujet l’exemple de calcul figurant à l’annexe 1. 10 La majeure partie de tous les instruments TBTF est émise par des banques d’importance systémique. C’est donc à elles que la présente innovation s’adresse en priorité. Du point de vue juridique, l’innovation sera cependant également applicable aux sociétés mères de banques d’importance non systémique. Ces dernières doivent elles aussi se conformer à certaines prescriptions prudentielles en matière de capital propre, raison pour laquelle une égalité de traitement avec les banques d’importance systémique est justifiée. Le traitement spécial des instruments TBTF dans la législation régissant l’impôt anticipé et les droits de timbre est lui aussi valable pour toutes les banques (cf. ch. 1). 5 Propositions rejetées Diverses variantes ont été examinées dans le cadre des travaux préparatoires. Le 30 septembre 2016, le Conseil fédéral s’est prononcé en faveur de la présente solution et a simultanément rejeté les variantes exposées ci-après. Émission non exclusivement effectuée par l’entremise de la société mère: du point de vue fiscal, le plus simple serait que les instruments TBTF soient émis non pas par la société mère, mais directement par la banque opérationnelle ou par une entité à vocation spéciale (cf. ch. 2.3). Du point de vue du droit de la surveillance, une telle émission ne pourra à l’avenir plus être autorisée dans des banques d’importance systémique (cf. ch. 2.1). Cette variante est donc condamnée par les normes du droit de la surveillance. Passage à l’exonération directe: les pays environnants ne connaissent pas le système indirect de la réduction pour participation sur l’impôt dû. Le système appliqué consiste au contraire en une exonération directe du rendement des participations de l’assiette fiscale. Suivant la structure concrète qui lui serait donnée, ce système pourrait dans une large mesure résoudre la présente problématique. Le passage à l’exonération directe a déjà été proposé dans la consultation relative à la troisième réforme de l’imposition des entreprises. En raison d’un large rejet lors de la consultation12, le Conseil fédéral a renoncé à cette proposition dans le message du 5 juin 2015 concernant la loi sur la troisième réforme de l’imposition des entreprises13. Dans ce contexte, le Conseil fédéral estime que le changement de système n’est actuellement pas susceptible de rassembler une majorité politique et renonce par conséquent à explorer cette voie. Un passage de l’exonération indirecte à l’exonération directe du rendement des participations exclusivement limité aux sociétés mères de banques émettant des instruments TBTF a également été examiné. Cependant, ce système se traduirait par une inégalité de traitement et par un traitement privilégié des banques par rapport aux autres branches, raison pour laquelle cette variante a également été rejetée. Seuls les intérêts versés aux investisseurs ne sont pas pris en compte pour le calcul de la réduction pour participation: les frais de financement pris en compte pour le calcul de la réduction pour participation ne seraient pas augmentés du fait de l’émission d’instruments TBTF. Cependant, le fait que le transfert aux banques opérationnelles augmente le total du bilan de la société mère et que cela soit pris en compte dans le calcul de la réduction pour participation pose un problème14. Il en résulte 12 Cf. présentation intégrale des prises de position reçues dans le cadre de la procédure de consultation du 29 avril 2015, ch. 4.9 13 FF 2015 4613 14 Cf. graphique sous ch. 2.3. 11 généralement une réduction pour participation plus élevée que celle qui découle de l’exclusion supplémentaire de l’augmentation de l’ensemble des actifs qui est proposée ici. Sans cette exclusion supplémentaire, les sociétés mères de banques seraient mieux loties que les entreprises d’autres branches, car elles profiteraient d’un allégement injustifié de l’impôt sur le bénéfice. 6 Mise en œuvre Le projet est mis en œuvre par la Confédération et les cantons. L’art. 70, al. 6, AP-LIFD et l’art. 28, al. 1quater, AP-LHID doivent entrer en vigueur simultanément. D’après l’art. 72x, al. 1, AP-LHID, les cantons doivent adapter leur législation fiscale à la nouvelle réglementation énoncée à l’art. 28, al. 1quater, APLHID pour la date d’entrée en vigueur de cette dernière. L’art. 28, al. 1quater, APLHID est directement applicable si le droit cantonal n’est pas adapté à temps (art. 72x, al. 2, AP-LHID). Le Conseil fédéral fixe la date d’entrée en vigueur. Cette dernière est possible au plus tôt le 1er janvier 2019. 7 Commentaire des différents articles Art. 70, al. 6, AP-LIFD Cette disposition décrit la non-prise en compte des instruments TBTF lors du calcul de la réduction pour participation des sociétés mères de banques. Cette mesure s’applique aux sociétés mères de banques d’importance systémique et non systémique, de groupes financiers ou de conglomérats financiers à dominante bancaire. Dans le cas des conglomérats financiers, la société mère doit être une entreprise placée sous la surveillance de la FINMA et sous sa compétence en matière de faillite15. Sur le plan matériel, la norme s’applique exclusivement aux CoCo (emprunts à conversion obligatoire), aux write-off bonds (emprunts assortis d’un abandon de créances) et aux bail-in bonds (instruments de dette destinés à absorber les pertes en présence de mesures en cas d’insolvabilité). Les instruments de dette destinés à absorber les pertes ne sont pas cités nommément aux art. 28 à 32 LB, mais se fondent sur les art. 126 et 126a de l’ordonnance du 1er juin 2012 sur les fonds propres16. La FINMA homologue également les bail-in bonds de ce genre lorsqu’ils ne sont pas émis en tant qu’obligations, mais en tant que prêts consentis aux mêmes conditions. Ils sont prévus à l’art. 70, al. 6, let. b, AP-LIFD. Auprès de la société mère, pour le calcul de la réduction pour participation visée aux art. 69 et 70, al. 1, LIFD, les facteurs suivants, qui sont en relation avec l’émission des instruments TBTF et le transfert des fonds qui en proviennent, ne doivent pas être pris en compte17:  l’intérêt versé aux investisseurs, en tant que frais de financement au sens de l’art. 70, al. 1, LIFD; 15 Cf. art. 2bis, al. 1, let. a, de la loi sur les banques. 16 RS 952.03 17 Cf. graphique sous ch. 2.3. 12  la créance inscrite au bilan à la suite du transfert des fonds au sein du groupe, au sens de l’art. 70, al. 1, LIFD. Il est fait abstraction de ces deux facteurs exclusivement aux fins du calcul de la réduction pour participation. L’assiette de l’imposition au sens des art. 57 à 67 LIFD reste inchangée. Par conséquent, le bénéfice net total visé à l’art. 69 LIFD continue de correspondre à ce bénéfice net imposable. Pour que la non-prise en compte motivée par des considérations prudentielles soit applicable, les conditions suivantes doivent donc être cumulativement remplies:  la banque, le groupe financier ou le conglomérat financier à dominante bancaire est soumis à la surveillance de la FINMA;  il s’agit de la société mère;  la FINMA a approuvé ou ordonné l’émission des instruments TBTF au sens des art. 11, al. 4, et 28 à 32 de la loi sur les banques, et  la société mère a transféré les fonds levés grâce aux instruments TBTF à une banque opérationnelle. Les instruments TBTF de l’AP-LIFD et de la LIA sont identiques, même s’ils sont décrits de manière différente. En outre, les bail-in bonds sont repris en tant que prêts dans la LIFD. Art. 28, al. 1quater, AP-LHID Cette disposition correspond point par point à l’art. 70, al. 6, AP-LIFD. Elle s’applique aux impôts cantonaux sur le bénéfice. Art. 72x AP-LHID Sur la base de cette disposition transitoire, les cantons doivent adapter leur législation fiscale à la nouvelle réglementation pour la date d’entrée en vigueur de cette dernière (al. 1). Selon l’al. 2, l’art. 28, al. 1quater, AP-LHID est directement applicable si la législation fiscale cantonale n’est pas adaptée d’ici là. On s’assure ainsi que l’innovation soit appliquée simultanément dans tous les cantons ainsi qu’à la Confé- dération. Le Conseil fédéral fixe la date d’entrée en vigueur. 8 Conséquences 8.1 Conséquences sur la Confédération, les cantons et les communes 8.1.1 Conséquences financières Sans une adaptation de la législation, la charge fiscale assumée au titre de l’impôt sur le bénéfice par les sociétés mères de banques disposant d’importants rendements de participations augmentera dès que des instruments TBTF devront être émis. Ces prochaines années, selon des estimations de la FINMA, il faut compter avec de nouvelles émissions pouvant atteindre un total de 60 à 80 milliards de francs dans les banques d’importance systémique mondiale. Par conséquent, l’augmentation de la charge fiscale au titre de l’impôt sur le bénéfice qui serait provoquée par la réduction pour participation s’accompagnerait à long terme de recettes supplémentaires annuelles pouvant atteindre plusieurs centaines de millions de francs en ce qui concerne l’impôt fédéral direct et les impôts cantonaux. 13 L’ampleur de cette évolution ne peut être quantifiée exactement, car les incertitudes suivantes subsistent: Volume des émissions: la fourchette du volume total des émissions est très vaste (environ 60 à 80 milliards de francs cumulativement). La raison principale réside dans le fait que les exigences découlent de la taille et de la structure de risque des entreprises, soit des facteurs susceptibles d’évoluer. En outre, les efforts consentis par les banques pour améliorer leur capacité d’assainissement et de liquidation peuvent être honorés par une baisse des exigences en matière de bail-in bonds (rabais). Niveau des taux d’intérêt/refinancement: le montant des frais de financement dépend aussi du niveau des taux d’intérêt auxquels les banques peuvent placer les instruments TBTF sur le marché des capitaux. Il faut en outre partir de l’idée qu’elles vont procéder au rachat d’instruments TBTF émis antérieurement: d’une part pour s’endetter à des conditions plus avantageuses, soit parce qu’il n’est plus nécessaire de détenir des instruments TBTF, soit parce que les taux d’intérêt applicables à ces instruments ont baissé; d’autre part, dans le cas des bail-in bonds, parce que l’échéance le rend nécessaire. Si des instruments TBTF existants sont remplacés par de nouveaux, le volume des émissions se situera plutôt dans la partie supérieure de la fourchette. Perspectives bénéficiaires: les recettes supplémentaires dépendent de façon décisive de l’évolution du bénéfice des établissements concernés. Autres optimisations: finalement, même sans adaptations légales de la réduction pour participation, le potentiel de recettes supplémentaires pourrait amener les sociétés mères à optimiser la distribution du rendement des participations du point de vue fiscal dans le cadre des possibilités existantes. Il serait par exemple possible de procéder à une distribution non périodique du rendement des participations de la banque opérationnelle à la société mère. 8.1.2 Conséquences sur le personnel La nouvelle réglementation n’a aucune conséquence sur les effectifs de la Confédé- ration, des cantons et des communes. 8.2 Conséquences économiques La révision a un effet stabilisateur sur l’économie, car le nouveau calcul de la réduction pour participation évite l’affaiblissement de la base de capital propre des banques (cf. ch. 4). 9 Aspects juridiques Les sociétés mères de banques sont seules à pouvoir profiter de la mesure proposée. Les autres sociétés de capitaux ou sociétés coopératives sont toutes exclues de son champ d’application. Il y a lieu de se demander si l’innovation proposée constitue une inégalité de traitement contraire au droit au sens de l’art. 8 de la Constitution18. 18 RS 101 14 Il y a inégalité de traitement contraire au droit (I) lorsque deux sujets fiscaux placés dans des situations comparables (II) sont traités de façon inégale sans raison objective (III). Une inégalité de traitement justifiée et objectivement fondée n’est possible que sous réserve de la proportionnalité (IV). Inégalité de traitement (I): la nouvelle réglementation introduit une réglementation spéciale pour les banques. Dans toutes les autres sociétés de capitaux ou sociétés coopératives, le transfert de fonds levés par l’entremise d’une société mère diminue sans restriction la réduction pour participation. Toutes ces sociétés restent donc soumises au désavantage – inhérent au système – de l’exonération indirecte (cf. ch. 5). Dans les sociétés mères de banques, ce désavantage est maintenant partiellement supprimé. Il y a donc inégalité de traitement. Situations non comparables (II): les sociétés mères de banques ne se trouvent pas dans une situation comparable à celle des autres sociétés de capitaux ou sociétés coopératives. Les bail-in bonds, les CoCo et les write-off bonds sont une spécialité du droit bancaire due aux dispositions prudentielles spécifiques. Les autres sociétés de capitaux et sociétés coopératives ne sont pas soumises à ces normes prudentielles. Les sociétés opérationnelles du groupe des entreprises de ce genre peuvent recueillir des capitaux de tiers directement. Pour elles, l’allégement de l’impôt sur le bénéfice par la réduction pour participation revêt une importance mineure, car elles ne disposent que de faibles rendements de participations. Contrairement aux sociétés mères de banques, les autres sociétés mères ne peuvent pas être contraintes par les prescriptions prudentielles en matière de capital propre à émettre des instruments TBTF de ce genre et à transférer les fonds au sein du groupe. Par conséquent, les sociétés mères de banques et les sociétés mères d’autres sociétés de capitaux et sociétés coopératives se trouvent dans des situations juridiques différentes. Objectivement fondé (III): ainsi que cela a déjà été exposé (cf. ch. 4), la mise en œuvre du régime TBTF est d’intérêt public. La diminution de la réduction pour participation par l’émission d’instruments TBTF par l’entremise de sociétés mères a une incidence négative sur leur base de capital propre. Cet effet est contraire aux objectifs du régime TBTF, qui vise à renforcer cette base de capital propre. La présente correction du calcul de la réduction pour participation tient compte de cet intérêt prudentiel par une adaptation ponctuelle de la base de calcul. En ce sens, pour les banques d’importance systémique, la nouvelle réglementation présente est objectivement fondée et relève d’un intérêt public prépondérant. Pour les banques d’importance non systémique, cette innovation est judicieuse dans l’optique de l’égalité de traitement avec les banques d’importance systémique. Comparativement aux autres branches, elles sont elles aussi soumises à certaines exigences prudentielles en matière de fonds propres. Proportionnalité avérée (IV): étant donné que la réglementation proposée se réfère exclusivement à la particularité découlant du droit prudentiel et qu’au surplus le calcul de la réduction pour participation est régi par les mêmes réglementations, la non-prise en compte motivée par des considérations prudentielles ne va pas au-delà de ce qui est impérativement nécessaire. En particulier, les autres frais de financement doivent être pris en compte pour le calcul de la réduction pour participation même dans les sociétés mères de banques19. La différence de traitement est donc proportionnée. 19 Voir à ce sujet l’exemple de calcul figurant à l’annexe 1. 15 En résumé, on peut donc affirmer que le projet crée une différence de traitement objectivement justifiée pour des états de fait différents. Annexes:  Exemple de calcul  Glossaire complémentaire relatif au droit de la surveillance 16 17 Annexe 2 du rapport explicatif relatif à la loi fédérale sur le calcul de la réduction pour participation en cas d’émission d’instruments dans le cadre du régime des établissements financiers trop grands pour être mis en faillite Glossaire complémentaire relatif au droit de la surveillance – Bail-in bonds Les bail-in bonds sont des instruments de dette qui sont destinés à absorber les pertes en présence de mesures en cas d’insolvabilité et qui servent de volant de capital supplémentaire aux banques. Il s’agit d’obligations d’emprunt qui, en cas (de risque) d’insolvabilité, peuvent être réduites ou converties en capital propre dans le cadre d’une procédure d’assainissement ordonnée par la FINMA en application des art. 28 à 32 de la loi du 8 novembre 1934 sur les banques (LB)20 et en particulier de l’art. 31, al. 3, LB (cf. en outre les art. 126a, 132 et 133 de l’ordonnance du 1er juin 2012 sur les fonds propres [OFR]21). Tandis que dans le cas des CoCo les organes de la société doivent veiller à ce que les actions soient disponibles en cas de conversion, dans le cas des bail-in bonds les actions sont créées par décision de la FINMA, qui agit en sa qualité d’autorité chargée de l’assainissement, et attribuées aux créanciers en compensation de la réduction de la créance, l’ancien capital social ayant préalablement été amorti. Les bail-in bonds ont été inscrits dans la LB au 1er juillet 2016. Contrairement au capital social et aux CoCo, les bail-in bonds ne sont pas considérés comme des fonds propres réglementaires; en Suisse, ils servent uniquement à remplir les exigences en matière de fonds supplémentaires destinés à absorber les pertes, qui ne concernent actuellement que les banques d’importance systémique actives au niveau international (cf. «Respect des exigences réglementaires»). D’après les dispositions de l’ordonnance sur les fonds propres, la FINMA peut homologuer en tant qu’obligations d’emprunt non seulement les bail-in bonds, mais aussi les prêts qui sont consentis aux mêmes conditions. 20 RS 952.0 21 RS 952.03 18 – Banque Au sens de l’ordonnance du 30 avril 2014 sur les banques22 (art. 2, al. 1, let. a), on entend par banques les entreprises actives principalement dans le secteur financier et qui en particulier acceptent des dépôts du public à titre professionnel ou font appel au public pour les obtenir. Les banques doivent avoir obtenu une autorisation de la FINMA pour commencer leur activité commerciale et sont soumises à la surveillance prudentielle de cette dernière. En règle générale, les banques disposent également d’une autorisation de négociant en valeurs mobilières. Dans le présent contexte, le terme de banque comprend également les groupes financiers et les conglomérats financiers à dominante bancaire. – Banque opérationnelle Le terme de banque opérationnelle désigne une banque exerçant directement l’activité bancaire au sein d’un groupe financier. La banque opérationnelle peut elle aussi détenir des participations dans des filiales. Cependant, contrairement à une société holding, elle pratique elle-même l’activité bancaire et possède l’autorisation de la FINMA ou d’une autorité étrangère correspondante nécessaire à cet effet. Dans le rapport explicatif, le terme de banque opérationnelle comprend également des sociétés de services ou d’autres sociétés appartenant au groupe d’une banque. – Banques d’importance systémique En Suisse, cinq banques d’importance systémique sont actuellement soumises à des dispositions prudentielles. Ces dispositions visent à éviter à long terme que des banques d’importance systémique n’aient besoin de mesures étatiques de sauvetage. À l’heure actuelle, l’UBS et le CS sont considérés comme des banques d’importance systémique mondiale23 du point de vue prudentiel et comme des banques d’importance systémique actives au niveau international au sens de l’art. 124a de l’ordonnance sur les fonds propres. Les autres banques d’importance systémique sont la Banque cantonale de Zurich, le Groupe Raiffeisen et Post- 22 RS 952.02 23 Conformément à la systématique du Conseil de stabilité financière et à la liste dont la publication la plus récente remonte au 21 novembre 2016 (2016 list of global systemically important banks [G-SIBs]). 19 Finance. Les banques d’importance systémique sont toutes soumises à des exigences particulières en matière de fonds propres (pouvant par ex. être remplies au moyen de Coco ou de write-off bonds). Le CS et l’UBS doivent disposer de moyens supplémentaires destinés à absorber les pertes en présence de mesures en cas d’insolvabilité (en général, l’émission de bail-in bonds constitue la manière la plus judicieuse de remplir cette exigence). Toutes les autres banques sont soumises aux exigences prudentielles valables de façon générale. Le terme de banque d’importance non systémique n’apparaît pas dans le droit de la surveillance et n’est donc pas non plus utilisé par la Banque nationale suisse. Dans le présent contexte, on y a recours afin de simplifier la délimitation. – Banques d’importance systémique mondiale Cf. «Banques d’importance systémique». – CoCo Les CoCo (contingent convertibles) sont des emprunts à conversion obligatoire; ils sont convertis en capital propre (le plus souvent des actions) de la banque concernée lorsque se produit un événement déterminé appelé trigger. Avant leur conversion, les CoCo sont des capitaux de tiers pouvant être pris en compte en tant que capital propre sous l’angle du droit de la surveillance. Ils ont été inscrits dans la loi sur les banques (cf. art. 11, al. 2, LB) au 1er mars 2012, à l’occasion de l’introduction du régime des établissements financiers trop grands pour être mis en faillite. – Émission d’instruments TBTF L’émission d’instruments TBTF est effectuée conformément aux dispositions de la loi sur les banques (art. 11 à 13 et 28 à 32 LB) et doit être approuvée par la FINMA si elle vise au respect des exigences réglementaires (voir sous ce terme). Quant à savoir quelle société appartenant au groupe d’une banque émet les instruments TBTF, cf. «Réglementation transitoire». – Entité à vocation spéciale, Société à but unique. Les sociétés de ce genre sont fondées au sein de la structure du groupe en vue d’un but unique. Dans le cas pré- sent, cette formule entre en ligne de compte pour l’émission de 20 EVS CoCo, de write-off bonds ou de bail-in bonds. – Groupes financiers, conglomé- rats financiers à dominante bancaire Un groupe financier est un groupe d’entreprises liées par une unité économique ou un devoir de prêter assistance qui est essentiellement actif dans le domaine financier et qui comporte au moins une banque ou un négociant en valeurs mobilières (art. 3c, al. 1, LB). Si l’une des entreprises participantes est une assurance, on parle alors de conglomérat financier (art. 3c, al. 2, LB). La FINMA peut assujettir des groupes financiers et des conglomé- rats financiers à la surveillance des groupes. Cette surveillance des groupes complète la surveillance des entreprises individuelles. Les groupes ou conglomérats financiers ne sont soumis à la compé- tence de la FINMA en matière d’assainissement que s’ils sont dominés par le secteur bancaire. Pour les groupes financiers, c’est toujours le cas. Pour les conglomérats financiers, cela n’est le cas que lorsque la société mère est soumise à la surveillance de la FINMA et à sa compétence en matière de faillite (art. 2bis, al. 1, let. a, LB). – Instruments TBTF CoCo, write-off bonds, bail-in bonds; voir également sous ces termes. Les dispositions TBTF de la loi sur les banques visent à empêcher que, en cas de crise, des banques soumises à la surveillance de la FINMA ne doivent être sauvées par l’argent du contribuable. À cet effet, ces établissements doivent remplir certaines exigences en matière de fonds propres et de fonds supplémentaires destinés à absorber les pertes. Ces dispositions sont entrées en vigueur le 1er mars 2012. Depuis cette date, les banques peuvent émettre des emprunts à conversion obligatoire (CoCo) et des emprunts assortis d’un abandon de créances (write-off bonds) qui sont pris en compte en tant que capital propre réglementaire. Conformément au mandat d’examen que la loi sur les banques confère au Conseil fédéral, les dispositions TBTF ont été contrô- lées en 201524, et diverses modifications légales ont été effectuées au 1er juillet 2016. C’est ainsi que, depuis le 1er juillet 2016, il est en 24 Rapport «Too big to fail» (TBTF), examen prévu par l’art. 52 de la loi sur les banques et en réponse aux postulats 11.4185 et 14.3002, FF 2015 1793. 21 plus possible d’émettre des instruments appelés bail-in bonds. – Réglementation transitoire Jusqu’au 31 décembre 2016 (c’est-à-dire jusqu’à l’entrée en vigueur de la révision de l’impôt anticipé et des droits de timbre), les banques d’importance systémique mondiale émettaient des bail-in bonds par l’entremise d’entités à vocation spéciale (EVS) situées à l’étranger. Depuis le 1er janvier 2017, l’émission doit en principe avoir lieu à partir de la Suisse. À titre de réglementation transitoire dans l’optique de la nouvelle réglementation de la réduction pour participation visée par le présent projet, la FINMA autorise ces banques à émettre des instruments TBTF par l’entremise d’une EVS suisse en lieu et place de la société mère. À cet effet, une banque devait transférer pour le 31 mars 2017 tous les bail-in bonds émis jusqu’alors par l’entremise d’une EVS étrangère dans une EVS suisse. Une EVS – pour autant que ces entités soient acceptées à long terme – résoudrait le problème de droit fiscal relatif au calcul de la réduction pour participation, mais elle n’est pas souhaitable sous l’angle prudentiel; de surcroît, conformément aux normes du Conseil de stabilité financière, elle ne sera plus admise sur le plan international pour les banques d’importance systémique mondiale à compter du 1er janvier 2022. La FINMA ne va par conséquent autoriser cette réglementation transitoire que jusqu’à l’entrée en vigueur de la présente innovation, mais jusqu’au 31 décembre 2019 au plus tard. Les instruments TBTF qui auront été émis dans l’intervalle par l’EVS suisse ainsi que ceux qui auront été transférés de l’EVS étrangère à l’EVS suisse devront ensuite être transférés dans la société mère. Du point de vue prudentiel, les instruments TBTF devront désormais être exclusivement émis par l’entremise de la société mère. Depuis 2017, les banques qui ne remplissent pas les conditions dont la FINMA a assorti cette réglementation transitoire ne peuvent déjà plus émettre des instruments TBTF par l’entremise d’une EVS; du point de vue prudentiel, elles doivent les émettre exclusivement par l’entremise de la société mère. Leurs bails-in bonds émis avant 2017 à partir d’une EVS étrangère sont conservés. Cependant, dans le contexte international (Conseil de stabilité financière), leur prise en compte au-delà du 31 décembre 2021 n’est pas encore assurée. Selon la pratique actuelle de la FINMA, les autres banques d’importance systémique émettent déjà leurs instruments TBTF exclu- 22 sivement par l’entremise de la société mère. Aucune réglementation transitoire du type de celle qui s’applique aux banques d’importance systémique mondiale n’est prévue à leur intention. Contrairement aux banques d’importance systémique mondiale, elles ne disposent pas d’une structure classique de holding. Du point de vue prudentiel, il y a dans chaque groupe une banque clairement identifiable servant de société mère et émettant les instruments TBTF. Dans ces banques d’importance systémique, le problème de droit fiscal relatif au calcul de la réduction pour participation a des répercussions moins fortes que dans les banques d’importance systémique mondiale. En sa qualité de banque opérationnelle, la société mère ne dispose pas en majeure partie de rendements de participations, mais réalise des bénéfices opérationnels qui proviennent d’autres activités et ne sont pas soumis à la réduction pour participation. En matière de droit de la surveillance, les banques d’importance non systémique n’ont aucune obligation d’émettre les instruments TBTF par l’entremise de la société mère. Du point de vue prudentiel, ces établissements financiers ne sont pas tenus de mettre en place une société mère aux fins de l’émission. Par conséquent, la banque opérationnelle, mais aussi la société mère exerçant une activité opérationnelle, peuvent si nécessaire émettre directement des instruments TBTF. – Respect des exigences réglementaires Dans toutes les banques, les CoCo et les write-off bonds constituent des fonds propres du point de vue prudentiel et servent par conséquent à répondre à une exigence réglementaire. À l’heure actuelle, l’exigence relative aux fonds supplémentaires destinés à absorber les pertes fondée sur les art. 28 à 32 de la loi sur les banques en relation avec les art. 132 et 133 de l’ordonnance sur les fonds propres concerne uniquement les deux banques d’importance systémique mondiale et peut être remplie par des bail-in bonds. Du point de vue du droit fiscal, il s’agit dans les deux cas de capitaux de tiers. Selon les estimations, plus de 90 % de tous les instruments TBTF ont été jusqu’à présent émis par des banques d’importance systé- mique. Étant donné que les banques d’importance non systémique n’ont aucune exigence à remplir en matière de fonds supplémentaires destinés à absorber les pertes, ces banques ne sont en aucune 23 manière incitées à émettre des bail-in bonds. De ce fait, la part des banques d’importance systémique dans le volume total d’instruments TBTF aura encore tendance à augmenter. Le transfert des fonds au sein du groupe vise à répondre aux exigences réglementaires à un échelon inférieur du groupe financier. En Suisse, dans les deux groupes financiers d’importance systé- mique actifs au niveau international, des exigences de ce genre existent à l’échelon du siège ainsi qu’à l’échelon des banques qui sont devenues autonomes ces deux dernières années et se focalisent sur l’activité bancaire sur le marché indigène. – TBTF Abréviation de too big to fail (trop grand pour être mis en faillite). Afin de minimiser à l’avenir les mesures étatiques de sauvetage pour les banques d’importance systémique et les conséquences financières pouvant en résulter pour le contribuable, la Suisse a édicté une réglementation TBTF ciblée. Quatre mesures sont prévues pour réduire la probabilité de défaillance et améliorer la capacité d’assainissement et de liquidation:  Augmentation du capital propre  Amélioration des liquidités  Planification de la stabilisation et de l’assainissement ou de la liquidation  Amélioration des dispositions relatives à l’insolvabilité des banques Sur la base de la législation TBTF (ou législation relative aux établissements financiers trop grands pour être mis en faillite), les banques soumises à la surveillance de la FINMA peuvent notamment être obligées à émettre des CoCo, des write-off bonds et des bail-in bonds afin de renforcer leur base de capital propre ou de remplir les exigences en matière de fonds supplémentaires destinés à absorber les pertes. – TLAC Total loss absorbing capacity. En 2016, le régime TBTF (ou ré- gime des établissements financiers trop grands pour être mis en 24 faillite) a été complété par la norme en matière de TLAC25. Dé- sormais, en plus des fonds propres, les établissements doivent disposer de créances requalifiables suffisantes pour assurer l’assainissement ou la liquidation ordonnée de la banque en cas de crise (exigence pouvant par ex. être remplie au moyen de bail-in bonds). Le concept de TLAC vise à permettre la liquidation de banques actives au niveau mondial de telle façon que la stabilité financière ne s’en trouve pas compromise et qu’il soit possible de renoncer à utiliser des fonds publics, autrement dit l’argent du contribuable. La norme en matière de TLAC exige que, à l’issue d’un délai transitoire se terminant le 31 décembre 2021, une solution uniforme soit appliquée à l’émission d’instruments TBTF. C’est ainsi que les banques d’importance systémique mondiale doivent émettre tous les instruments TBTF par l’entremise de leur société mère. En règle générale, cette dernière transfère les fonds externes provenant des instruments TBTF aux banques opérationnelles qui ont besoin de renforcer leur base de capital propre ou qui font l’objet d’exigences en matière de fonds supplémentaires destinés à absorber les pertes. Ce genre de transfert au sein du groupe en tant que prêt ou similaire devrait constituer la règle générale. Le transfert a lieu, au moins dans un premier temps, vers le siège suisse et de là, en fonction des besoins et dans un deuxième temps, vers une ou plusieurs filiales de ce dernier. La société holding doit impérativement transférer ces fonds. En effet, elle ne dispose pas des capacités d’investissement, car la trésorerie des deux grandes banques est gérée par la banque proprement dite. – Transfert au sein du groupe Cf. «TLAC» et «Réglementation transitoire». – Trigger Événement déclencheur. Un trigger déclenche la conversion d’instruments TBTF en capital propre ou l’amortissement de ces instruments. En pratique, c’est principalement le cas lorsque le ratio de 25 Document «Principles on Loss-absorbing and Recapitalisation Capacity of G-SIBs in Resolution. Total Loss-Absorbing Capacity (TLAC) Term Sheet» publié le 9 novembre 2015 par le Conseil de stabilité financière. La Suisse transpose cette norme internationale dans le droit national; voir à ce sujet le rapport explicatif du DFF concernant les modifications de l’ordonnance sur les fonds propres et de l’ordonnance sur les banques, version remaniée du 13 mai 2016, ch. 1.4.1. 25 capital propre passe en dessous d’un seuil prédéfini (seuil de dé- clenchement) et lorsqu’il existe un risque d’insolvabilité. Dans le cas des bail-in bonds, le trigger est nécessairement une décision formelle d’assainissement de la FINMA. – Write-off bonds Les write-off bonds sont des emprunts assortis d’un abandon de créances. Lorsqu’un événement particulier se produit (un trigger, comme dans le cas des CoCo; voir sous ce terme), ils ne sont pas convertis en capital propre, mais amortis. L’abandon de créances n’est pas une option en cas de crise, mais une variante choisie d’emblée par l’établissement émetteur. Selon la forme juridique de ce dernier (en particulier s’il s’agit d’une collectivité publique ou d’une coopérative), cette variante doit être choisie pour la simple et bonne raison qu’une conversion en capital propre ne serait pas du tout réalisable. Avant amortissement, ces fonds constituent du point de vue du droit fiscal des capitaux de tiers. Du point de vue prudentiel, ils peuvent être pris en compte à titre de fonds propres. Les write-off bonds ont été inscrits dans la loi sur les banques (cf. art. 11, al. 2, LB) au 1er mars 2012, à l’occasion de l’introduction du régime des établissements financiers trop grands pour être mis en faillite.

Monnaie Sardex, succès inspiré du Wir suisse

Prix du meilleur article financier : le sardex, une petite monnaie qui monte…

En deux ans, s’étendant comme un feu de brousse, le réseau Sardex a fait une dizaine de petits en Italie, des clones dont Sardex SPA est actionnaire : en Vénétie (Venetex), Emilie-Romagne (Liberex), Campanie (Felix), dans les Abruzzes (Abrex), dans le Molise (Samex), dans les Marches (Marchex), en Ombrie (Umbrex) ou dans le Piémont (Piemex) et le Latium (Tibex) ou encore la Lombardie (Linx) ou la Sicile (Sicanex)… en attendant la vallée d’Aoste (le Valdex). Sardex est derrière tous ces projets, procure la plateforme technique, participe au capital.
Prochaine étape : l’international. Des contacts sont noués pour des projets en Equateur, au Kenya, en Grèce… Ces Sardes ont la conviction qu’ils ont déclenché une petite révolution et ne s’étonnent pas de voir défiler dans leur île des universitaires du monde entier et des émissaires de gouvernements (y compris une mission interministérielle française) ou de la Banque européenne d’Investissement.

http://tempsreel.nouvelobs.com/economie/20161109.OBS0985/le-sardex-la-petite-monnaie-qui-monte-qui-monte.html

Prix du meilleur article financier : le sardex, une petite monnaie qui monteCarlo Mancosu et Gabriele Littera, deux des fondateurs du réseau Sardex, sur la place de Serramanna. (ALBERTO BEVILACQUA pour ”l’Obs”)

Notre ami Pascal Riché a obtenu le prix du meilleur article financier 2017 pour son enquête sur un système d’échange alternatif qui aide la Sardaigne à amortir la crise.

Quelque part en Sardaigne, dans une bourgade du Medio Campidano, une des régions les plus pauvres d’Europe, vivait un menuisier, Roberto. Sa maison était accolée à d’autres, à la lisière de Serramanna, non loin de gigantesques cuves vinicoles abandonnées, là où commencent les champs d’artichauts. Après une catastrophe venue d’un pays lointain qu’on appelait Wall Street, il avait perdu son emploi et décidé de se mettre à son compte. Dans le garage de son pavillon, il avait installé son atelier : scies, raboteuses, ponceuses, dégauchisseuses. Mais les clients étaient très rares. Roberto et sa femme devaient limiter les dépenses, y compris alimentaires. En 2015, le menuisier se demandait s’il n’allait pas fermer son affaire et rejoindre son frère aîné, Salvatore, jardinier, au bord du lac de Constance, en Allemagne.
Et puis un jour, un bon génie se présentant comme “broker” le contacta et lui dit qu’un bijoutier, à 20 kilomètres de là, avait besoin de refaire sa boutique. Mais attention, s’il acceptait le travail, le prévint-il, il ne serait pas payé en euros, mais en sardex. Roberto réfléchit, et décida d’accepter : il devint alors, en novembre 2015, membre du réseau Sardex. Et une fois le travail pour le bijoutier réalisé, comme par magie, les commandes se mirent à affluer. Pendant qu’il me raconte son conte de fées, Roberto Montis, 41 ans, se montre euphorique.
“J’ai maintenant le problème inverse : trop de travail.”
Son chiffre d’affaires a triplé, et désormais il paie presque tout en sardex : son bois, son vernis, sa nourriture. Il s’est même offert “un matelas d’une valeur de 2.400 euros”. Croyez qu’il dort bien ! “Je dois encore accepter quelques commandes en euros, pour payer les impôts et l’électricité”, dit-il. Attiré par ce retour de fortune, son frère est revenu d’Allemagne pour tenter sa chance au pays.
Roberto Montis, 41 ans. (Pascal Riché pour ”l’Obs”)

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Cette histoire d’artisan ou de commerçant sauvé par Sardex pourrait être racontée avec des personnages différents dans le rôle principal. Un forgeron, Bruno. Un patron de trois boutiques de prêt-à-porter à Cagliari, Simone. Un hôtelier, restaurateur et promoteur immobilier, Stefano…

Une crise parfaitement injuste

C’est peu de dire que le sardex, monnaie complémentaire d’échange entre entreprises lancée en 2010, a aidé l’économie locale, alors que frappait une crise parfaitement injuste. Parce qu’au cœur du capitalisme le marché des subprimes et la banque Lehman Brothers s’étaient effondrés, l’argent des banques avait fui cette périphérie devenue victime. Sans rien changer à la façon dont ils travaillaient, des entrepreneurs sardes sont brutalement devenus des “risques” bancaires. C’est le sort qu’a connu Stefano Loi, le restaurateur-promoteur :
“C’était absurde : on avait en Sardaigne des gens qui ne demandaient qu’à travailler et des besoins à satisfaire, mais on ne pouvait plus les faire se rencontrer, à cause des erreurs des banques. Sardex a permis de résoudre le problème.”
Cachée à Serramanna, petite ville calme de 9.000 habitants, avec ses vieillards alignés sur des bancs et son campanile de style gothique catalan, la start-up de 50 salariés apporte à l’île quelque 0,3 point de PIB par an. “Cela peut sembler peu, sauf si vous rapportez ce chiffre à la faible croissance locale”, commente Massimo Amato, professeur à l’université Bocconi de Milan. Surtout, Sardex a “relocalisé” une partie des échanges : dans les supermarchés entrés dans ce circuit, la part des produits frais sardes est ainsi passée de 18% à 36%.
Serramanna. (Pascal Riché pour ”l’Obs”)
Les fondateurs de Sardex, cinq jeunes hommes du cru, sont encore stupéfaits par ce qu’ils ont accompli. “C’est inimaginable. Quand on a commencé, on pariait sur un million d’euros d’échanges par an ; on va atteindre 70 millions cette année !” s’agite Giuseppe (“Peppi”) Littera. Agé de 36 ans, surnommé en interne le “génie de la bande”, cet homme, maigre comme un clou, est sans cesse en mouvement. Il n’aime pas trop les chiffres, mais enchaîne les fulgurances philosophiques, les rires potaches et les indignations sociales. Parfois il mélange les trois :
“On est dans une ère post-vérité. Regardez les gens : ils ont à la main des ordinateurs plus puissants que ceux qu’avait la Nasa pour aller sur la Lune, et ils s’en servent pour faire des selfies !”
Aucun des cinq n’a fait d’études d’économie, mais cela ne les a pas empêchés d’inventer une monnaie. A la différence d’autres monnaies complémentaires, qu’on “achète” avec des euros, celle-ci a sa propre dynamique. Elle est créée ex-nihilo, elle se développe naturellement ; elle est vivante.
De fait, la masse monétaire libellée en sardex ne cesse de gonfler. “Entre 2010 et 2015, le marché a triplé tous les ans”, résume Amato. Pour ce spécialiste des monnaies complémentaires, le sardex est la plus performante. Elle surpasse même, dit-il, son modèle initial, le WIR suisse, une des stars du film “Demain” : créé après la crise de 1929, le réseau WIR a récemment fondu d’un tiers et s’est peu ou prou transformé en banque.

“Un système de crédit amical”

Comment fonctionne le sardex ? Une plaisanterie d’économiste dit :
“Si quelqu’un t’explique comment marche la monnaie et si tu as l’impression d’avoir compris, c’est qu’il te l’a mal expliqué.”
Attablé dans le restaurant Enò, à Cagliari, le professeur Paolo Dini, de la London School of Economics, tente toutefois sa chance :
“Quand une banque prête, elle crée de la monnaie. Ce que Sardex fait, c’est donner ce pouvoir directement aux entreprises : il organise entre eux une relation sociale de crédits et de débits basée sur la confiance. J’achète quelque chose que tu as, par exemple cette tasse de café. Si tu as confiance, tu me fais crédit. Je peux écrire sur un bout de papier ‘je dois 10 euros’ : c’est de la monnaie. Sardex fonctionne ainsi, sauf qu’il n’y a pas de bout de papier : il n’y a que des comptes, qu’on débite et crédite sur son smartphone.”
Au départ, lorsque vous entrez dans le réseau Sardex (ce qui vous coûte quelques centaines d’euros par an, selon la taille de votre activité), votre solde est de zéro. Si vous achetez quelque chose à une autre entreprise du réseau, votre compte devient négatif (et, techniquement, de la monnaie est alors créée). Aucun intérêt n’est prélevé pour ce “découvert” : votre seule obligation est de sortir du rouge, en vendant à votre tour quelque chose en sardex, dans un délai raisonnable (douze mois).
Si vous avez besoin d’un bien ou d’un service précis, vous pouvez téléphoner à l’un des 16 “brokers” de Sardex, qui connaissent bien le réseau des 3.500 membres et qui vous aideront à le trouver. Ainsi l’ensemble des comptes du réseau s’équilibre : Sardex fonctionne comme une chambre de compensation entre des crédits et des débits. Seules les entreprises ont accès au réseau, mais elles peuvent distribuer des sardex à leurs employés, en complément de salaire.
Les fondateurs de Sardex, même s’ils affichent une modestie toute sarde, ont du mal à cacher leurs ambitions : ils rêvent de changer la façon dont fonctionne le capitalisme, pas moins.
“Le sardex, ce n’est pas qu’un échange financier, c’est un échange social. Il donne de la valeur à l’homme. Ce qu’on a fait en Sardaigne, cela peut être fait partout ailleurs. On s’y emploie”, assure le patron, Roberto Spano.
“Nous allons résoudre les problèmes liés à la distribution de crédit dans le monde entier. Nous avons inventé un système de crédit amical, sans intérêts, sans délais de paiement”, renchérit le directeur financier, Cesare Ravaglia (peu de femmes dans cette histoire sarde…).
Au siège de Sardex, à Serramanna. (ALESSANDRO TOSCANO)
En deux ans, s’étendant comme un feu de brousse, le réseau Sardex a fait une dizaine de petits en Italie, des clones dont Sardex SPA est actionnaire : en Vénétie (Venetex), Emilie-Romagne (Liberex), Campanie (Felix), dans les Abruzzes (Abrex), dans le Molise (Samex), dans les Marches (Marchex), en Ombrie (Umbrex) ou dans le Piémont (Piemex) et le Latium (Tibex) ou encore la Lombardie (Linx) ou la Sicile (Sicanex)… en attendant la vallée d’Aoste (le Valdex). Sardex est derrière tous ces projets, procure la plateforme technique, participe au capital.
Prochaine étape : l’international. Des contacts sont noués pour des projets en Equateur, au Kenya, en Grèce… Ces Sardes ont la conviction qu’ils ont déclenché une petite révolution et ne s’étonnent pas de voir défiler dans leur île des universitaires du monde entier et des émissaires de gouvernements (y compris une mission interministérielle française) ou de la Banque européenne d’Investissement.
Les autorités encouragent l’expérience, car elle renforce très clairement le tissu local. “Sardex, c’est à la fois Facebook, parce que c’est un réseau d’amis, LinkedIn, parce que c’est un réseau professionnel, et Google, parce qu’on y cherche ce dont on a besoin”, résume George Iosifidis, spécialiste des réseaux du futur au Trinity College de Dublin. L’Etat y gagne en recettes de TVA. Et puisque l’accumulation des sardex ne rapporte rien, on les dépense illico : la monnaie circule huit fois plus vite que les euros ! “Ce qui fait huit fois plus de TVA”, s’amuse Cesare Ravaglia.

Question de loyauté

L’aventure de Sardex a commencé il y a une dizaine d’années dans un appartement de la ville universitaire de Leeds, en Angleterre. Piero Sanna et Giuseppe Littera, originaires de Serramanna, y suivent des études. Un jour, Piero hurle :
“Viens voir cela, Peppi ! C’est incroyable.”
Tout excité, il lui montre une vidéo, vaguement conspirationniste, sur la façon dont fonctionne la monnaie. Comme beaucoup d’autres avant eux, les deux amis découvrent que ça ne marche pas du tout comme ils l’imaginent : la monnaie est créée par les banques à partir de rien, d’un courant d’air, à chaque fois qu’elles accordent un prêt. Ce ne sont pas les dépôts bancaires qui “font les crédits”, mais l’inverse : les crédits font les dépôts…
Les deux jeunes Sardes se prennent de passion pour les questions monétaires.
“C’est comme une tique. Une fois que vous l’avez attrapée, impossible de vous en défaire”, raconte Giuseppe Littera.
Les deux compères vont lire des tonnes de livres et d’études sur le sujet, passer des heures à la bibliothèque, fouiller les moindres recoins d’internet pour comprendre.
(Pascal Riché pour ”l’Obs”)
Après l’obtention de son diplôme, de retour à Serramanna avec Piero, Giuseppe enrôle Carlo Mancosu, son ami d’enfance, et Gabriele Littera, son frère, pour monter un projet fou : une nouvelle monnaie, complémentaire à l’euro, pouvant donner de l’oxygène à l’économie locale. Mordu d’informatique, Giuseppe conçoit le premier site. Ils fondent une société commerciale plutôt qu’une association (“pour être plus crédibles auprès de nos interlocuteurs”) et attendent que l’internet à haut débit arrive dans leur village pour se lancer, en janvier 2010. Persuadés d’avoir trouvé la pierre philosophale, ils attendent alors que des entreprises se précipitent. Mais rien ne se passe.
Les cinq fondateurs (ils ont été rejoints par Franco Contu) décident “d’aller serrer des mains”, de démarcher des entreprises. Après deux mois d’efforts, de stress, d’abattement parfois, ils parviennent à convaincre le patron d’une entreprise vendant des matériaux de construction. Conquis, ce dernier signe un chèque. Puis demande : “Bon. Quelles entreprises y a-t-il dans le réseau ?” Giuseppe se voit encore lui répondre, un peu embarrassé : “Euh, la vôtre.” Au bout de quelques mois, 100 entreprises ont adhéré. Aujourd’hui, elles sont 3.500 : avocats, restaurants, comptables, sociétés de construction, commerçants…
Sardex a d’abord levé 150.000 euros en 2011 auprès d’une société de capital-risque, et vient de lever 3 millions d’euros pour poursuivre l’aventure. Mais elle continuera à être pilotée de Serramanna, au milieu des artichauts et des moutons. Une question de loyauté au projet initial.
“Ce n’est pas Palo Alto, mais au moins c’est connecté à internet…”  
Par Pascal Riché, envoyé spécial à Cagliari et à Serramanna
La Sardaigne et le Sardex en chiffres 


Volume 2016 des transactions en sardex : 70 millions d’euros.
Entreprises dans le réseau : 3 500.
Contribution à la croissance : 0,3 point de PIB.
Vitesse moyenne de circulation d’un sardex : 12 échanges par an (contre 1,5 pour l’euro).


Population : 1,6 million (5 fois plus que la Corse).
Densité : 68 hab./km2 (Italie : 200 hab./km2).
PIB : 33 milliards d’euros (2,1% du PIB italien).
PIB par habitant : 19 791 euros (contre 26 548 euros pour l’Italie).
Chômage : 10% en 2007, 18,6% en 2014.
Chômage des jeunes : 56% (moyenne européenne : 20%). 
En France, un développement limité 


Les monnaies complémentaires existent depuis les années 1930, mais elles ont fleuri avec internet et la géolocalisation des commerces : on en compte plus de 4.000 dans le monde. Le modèle le plus répandu est celui des LETS (local exchange trading systems), un système de crédit mutuel qui a été imaginé en 1983 au Canada, dans une ville qui connaissait alors 40% de chômage, Courtenay. Le sardex s’inscrit dans cette filiation.  En France, il existe deux familles, mais chacune est limitée par le droit :


– les SEL (systèmes d’échange local)permettent aux citoyens de proposer des services : jardinage contre cours d’anglais, par exemple. Le premier des SEL a été créé dans l’Ariège en 1994, et leur nombre a augmenté après la crise de 2008. On en compte plus de 600, souvent anecdotiques. Les entreprises marchandes ne peuvent y participer. La mesure est parfois l’heure (une heure de cours de droit = une heure de bricolage) ;


– les monnaies locales en billets (souvent soutenues par les collectivités). On obtient des billets contre des euros, qui sont déposés dans un fonds de réserve. Il n’y a pas de création monétaire. Ces monnaies sont utilisées dans un réseau partageant les mêmes valeurs (écologiques, éthiques, etc.). Exemples : eusko du Pays basque (400.000 € convertis), roue de Provence, sol-violette de Toulouse. Une société coopérative du Tarn vient de lancer le coopek, dont l’ambition est de couvrir la France. Paris se prépare à lancer sa monnaie. Nom provisoire : la “seine”.


A lire : “Réinventons la monnaie !”, par B. Lietaer et J. Dunne, Editions Yves Michel, 2016 ;


“Repenser la monnaie”, par Marie Fare, Editions Charles Léopold Mayer/Institut Veblen, 2016 ;


“Réinventer la monnaie”, dossier d’”Alternatives économiques”, mai 2016.

Pascal Riché

Pascal Riché

Journaliste

Fraudes démocratiques en Suisse, démonstrations !





François de Siebenthal nous explique par quels moyens il est possible de trafiquer les résultats des votations et élections.

https://www.youtube.com/watch?v=ArYJMSVRZjY

http://desiebenthal.blogspot.ch/2017/06/votations-des-tricheries-partout.html 


Jura: fraudes démocratiques !

De plus, les enveloppes des votes par correspondance sont envoyées à Berne ( plus de 95 % ), ce qui leur permet de changer trop facilement le contenu des enveloppes…

Votations: tricheries reconnues par les autorités !


“On veut renforcer la confiance des ayants droit dans la votation et éviter des soupçons d’irrégularités”, 
a souligné le chancelier du canton de Berne Christoph Auer

Doutes sérieux reconnus par les plus hautes autorités !

La Confédération et le Canton de Berne notamment reconnaissent la valeur de presque toutes nos plaintes depuis des années.

Certaines des sages mesures prises concrètement à Moutier ( ci-dessous ) doivent être appliquées à tous les votes en Suisse.
Cette votation de Moutier peut et doit devenir le modèle de votations au-dessus de tout soupçon, avec des améliorations ( urnes transparentes, matériel de vote surnuméraire de couleur différente et contrôle de celui-ci avant, pendant et après à l’unité près, y compris toutes les impressions surnuméraires, y compris les maculatures ou les essais dans les imprimeries concernées…
Ils prennent enfin des mesures sérieuses pour éviter les irrégularités trop nombreuses et si faciles lors du vote de Moutier (BE) sur son appartenance cantonale:
plusieurs observateurs de la Confédération,
sceaux et câbles pour sceller chaque urne
suppression du dépouillement anticipé,
contrôle du vote par correspondance,
du registre des électeurs,
interdiction du vote électronique
et information dans les homes de personnes âgées
et contrôles près des poubelles des cases postales
et dans les locatifs.

Avec les différentes enveloppes de couleurs jaune, bleue et verte, ils auraient pu en profiter pour en faire des enveloppes toutes vraiment opaques, le simple doute et la facilité de tricher dans chaque greffe communal avec un simple téléphone muni d’une lampe de poche est grotesque, il n’y plus de secret de vote, ce qui ouvre la porte aux mesures de rétorsion, licenciements, mobbing, pressions etc…, c’est ridicule, on le fait pour l’argent, des enveloppes opaques, ( banques, poste…) mais pas pour les votes, depuis le début, le système est fait pour tricher facilement…




Nous cherchons plus de preuves et indices de partout, films des câbles de scellement et sceaux notamment à Moutier, inscriptions sur les sceaux, témoignages de concierges ou de pensionnaires d’EMS, , films ou photographies du dépouillement à Moutier, arrivée des urnes depuis Berne, photographies des observateurs fédéraux etc…

Au moins un fraudeur arrêté en Valais:


http://www.teletext.ch/RTSUn/108


https://www.youtube.com/playlist?list=PL6itUSSqpOjWbwZO3iK_-xxgUYPRODoKn




Exemples aussi à Genève:

François de Siebenthal: E-voting. Fraudes genevoises, refus du …

desiebenthal.blogspot.com/2013/09/e-voting-fraudes-genevoises-refus-du.html


7 sept. 2013 – Le procureur genevois refuse de donner les résultats de l’autopsie de Jean Chucri Canaan, malgré son décès très suspect à 40 ans…( battu à …

François de Siebenthal: RFID, passeports biométriques, nos recours …

desiebenthal.blogspot.ch/2009/06/rfid-passeports-biometriques-nos.html


12 juin 2009 – RFID, passeports biométriques, nos recours au tribunal fédéral. François de SiebenthalChucri Jean CANAAN devant le tribunal fédéral, pour …

Hommages – Pour que son souvenir demeure: Chucri Jean CANAAN

www.hommages.ch/Defunt/59791/Canaan_Chucri_Jean


23 mars 2011 – François De Siebenthal Chère Famille. Voici toutes nos condoléances. Nous gardons un souvenir ému de notre ami Jean, de son courage et …

E-Voting Case Law: A Comparative Analysis

https://books.google.ch/books?isbn=131713818X – Traduire cette page
Ardita Driza Maurer, ‎Jordi Barrat – 2016 – ‎Law

Federal Supreme Court Decisions 1C_245/2009, François von Siebenthal (1 October 2009) 1C_257/2009, Chucri Canaan (1 October 2009) 1C_329/2011 and …

François de Siebenthal: Taupe au MCG…fraudes démocratiques …

https://desiebenthal.blogspot.com/2014/…/taupe-au-mcgfraudes-democratiques.html?…


16 févr. 2014 – Jean Chucri Canaan, seul recourant pour fraudes démocratiques à …. François de Siebenthal: Recours final au tribunal fédéral 09 juin 2009 …

François de Siebenthal – RSSing.com

siebenthal1.rssing.com/chan-29893992/all_p50.html


François de Siebenthal: Systèmes d’échanges locaux améliorés …… les résultats de l’autopsie de Jean Chucri Canaan, malgré son décès très suspect à 40 ans.



L’exemple d’une autre fraude communale et son organisation de fraudeurs à Genève:


Liens vers ses conférences au sujet de la création monétaire : https://www.youtube.com/watch?v=dmwtB… https://www.youtube.com/watch?v=uKkua… 

Dilutions monétaires, des vols systématiques et continus “légalisés” par des astuces et tricheries notamment comptables, des complots prouvés au service de quelques “initiés”… Les banques commerciales, à ma connaissance actuelle, ont au moins 7 manières de “créer” des “substituts” monétaires en abusant par exemple de la marque Francs suisses ( ou €, ou $, ou £ etc ) et en diluant la vraie monnaie ( 7 origines de “monnaie nouvelle” ex nihilo ): Substituts selon la Confédération suisse: http://www.parlament.ch/e/suche/pages/geschaefte.aspx?gesch_id=20123305 


Opérations aux bilans:
 – Acquisition d’un actif réel (terrain, immeuble…) 
– Acquisition d’un actif financier ( action, obligation, titres) 
– Conversion de devises (not. suite à l’ exportation d’une entreprise cliente) 
-et conversion de devises ( sur ordre d’une banque centrale, swap ou d’un tiers qui a besoin d’un prête-nom !, à voir plus bas ) 
– Opération d’escompte 
– Opération de crédit 

Par le compte de pertes et profits 

– Leurs paiements (y compris leurs salaires et bonus). 

Les amendes colossales dues pour leurs graves crimes et fraudes systématiques sont en fait payées par des baisses d’impôts qu’ils devraient payer aux collectivités ( sic ), donc les amendes sont en réalité payées par les citoyens ( resic ) et les politiques de rigueur, ils gagnent à tous les coups, face ils gagnent, pile, nous perdons, et, en cas de faillitte, ils disent qu’ils sont trop gros et les politichiens payent et empruntant (re-re-sic ) à intérêts de nouvelles DETTES éternelles… et leur laissent leurs bonus, salaires, et autres parachutes dorés… Les banques centrales ne peuvent presque plus battre monnaie, sic, car l’essentiel de la monnaie est fait sous forme électronique, par des crédits à intérêts composés exponentiels, sur ordre des banques commerciales, les profits sont donc privatisés à 99 % et les pertes socialisées à 100 %, payées par les citoyens… 



Y’a pas d’wroblèmes sur facebook : https://www.facebook.com/yapasdwroble…

Vatican & money ?

Is the Vatican catholic ?

The love of money is the root of all evil.

The Vatican and IOR, see the report below, are not following the encyclical Vix pervenit.



Roma locuta, causa finita… Rome has spoken, the cause is closed… Any rate of interest kills millions of human beings…


Explanations: 


https://vimeo.com/136794177



http://www.papalencyclicals.net/Ben14/b14vixpe.htm



https://en.wikipedia.org/wiki/Vix_pervenit



http://www.ior.va/content/dam/ior/documenti/rapporto-annuale/IOR-Annual%20Report%202016.pdf


Invitations 2017
In English

 23, Av. Edouard Dapples, CH 1006 LAUSANNE. SUISSE

Tél: international ++ 41 21 616 88 8

http://desiebenthal.blogspot.ch/2015/12/swiss-positive-money-social-credit.html

François de Siebenthal: The love of money is the root of all evil.

desiebenthal.blogspot.com/…/love-of-money-is-root-of-all-evil.ht…

Traduire cette page

3 mai 2009 – Jesus said that the love of money is the root of all evil. This had no meaning for me (although I thought it did) until I read and studied the Social …

François de Siebenthal: Money creation management by the Swiss …

desiebenthal.blogspot.com/2013/10/money-creation-management-by-swiss.html

9 oct. 2013 – At least, the SNB controls and limits the money creation and the profits are … Be praised, my Lord, through those who forgive for love of you; …

François de Siebenthal: Games to explain money sytems

desiebenthal.blogspot.com/…/games-to-explain-money-sytems.htm…

Traduire cette page

25 déc. 2016 – You know that money is created in the form of debts with interest ….. It is really a way to avoid this love of money which is the root of all evils.

The love of money is the root of all evil.Social credit is a solution …

https://groups.google.com/d/topic/social-credit/x8nMw0Lq5d0

Traduire cette page

7 févr. 2017 – François de Siebenthal: Games to explain money sytems … 2016 – It is the love of money that is the root of all evil, and with this system, there is …

François de Siebenthal: Federal Council adopts monetary policy report

desiebenthal.blogspot.ch/2016/12/federal-council-adopts-monetary-policy.html

23 déc. 2016 – He recently spoke to Francois de Siebenthal, who is a former banker from ….. Helicopter Money: Or How I Stopped Worrying and Love …




How illuminati are lying, arguments and video from Julian Simon …

desiebenthal.blogspot.com/2008/08/how-illuminati-are-lying-arguments-and.html

11 août 2008 – François de Siebenthal … Julian Simon said in his book ” the ultimate Resource 1″ that he was paid … Play list for all Julian L. Simon ‘s videos.

François de Siebenthal: What overpopulation ???

https://desiebenthal.blogspot.com/…/what-overpopulation.html?m=…

Traduire cette page

15 févr. 2014 – Steve Moshe and Julian Simon : Human beings are the ultimate resource.” Confessions of an economic hitman. overpopulation propaganda.

An interview with a former Swiss banker – Michael Journal

www.michaeljournal.org/…/an-interview-with-a-former-swiss-ban…

Traduire cette page

He recently spoke to Francois de Siebenthal, who is a former banker from … Julian Simon said in his book “The Ultimate Resource 1” that he was paid by those …June 12, 2017, Monday

The Vatican Bank Is Reporting A 20 Million (c. $22 Million) Increase In Profits
How much money does the Vatican bank have?
About 5.7 billion euros. (That is about $6.3 billion.)
But most of it is not the Vatican’s money — it is the money of thousands of depositors, like religious orders, and bishops, and cardinals.
These depositors have a total of 14,960 accounts at the bank — down several thousand in the past two years due to Francis’ reform efforts. (The Vatican has spent almost four years now combing through the thousands of bank accounts, and closing many down. As Christopher Lamb reported today forThe Tablet (link), “Over the years the IOR had been mired in scandal with accusations that it was being used for money laundering and failing to abide by international financial standards.”)
The actual amount of the Vatican’s own money at the Vatican bank is a much more modest 636.6 million euro — about $700 million.
And what does the Vatican do with these funds? Does the IOR invest them in Apple stock, or Tesla, or Priceline? Or in commodities like oil or gold? Or in real estate? Bonds? And if in bonds, the bonds of which countries?
If you are looking for answers to such questions, you won’t get them from the Annual Report that the Vatican released today on the 2016 activity of the Vatican bank — officially called the Istituto per le Opere di Religione(Institute for the Works of Religion, commonly referred to as the IOR).
Here is a link to the actual text of the report, which is a 136-page PDF file, so you may open the file and read the entire report in English. (And I would be happy to receive any insight from a reader into the information this report contains, and what it means.)
There is no record anywhere in this report of the Vatican investing in stock like Apple or IBM or Facebook, or in Italian government 10-year treasury notes.
The results do give certain overall numbers.
For example, as stated at the outset, the total amount of money that the bank manages is about 5.7 billion euros (about $6.3 billion).
That may seem like a lot. And some might speculate, for example, that the Vatican might have earned a profit of, say, 5%, on all of those funds and investments, so, perhaps $315 million…
But that would be off target…
The results show that the bank had 36 million euros in profit, or a bit more than 1% of the total under management. And that is an increase of 20 million euros above the 16 million euros in profit the bank earned in 2015.
“These results,” writes Christopher Lamb, “will be seen as a boost for Pope Francis’ Vatican financial reforms, which he has entrusted to Australian Cardinal George Pell. Soon after taking over as Prefect of the Secretariat of the Economy, Cardinal Pell announced a new management of the bank, including appointing billionaire hedge fund guru Michael Hintze to its board.”
Lamb also writes: “In the 1970s and 80s, the bank was embroiled in the collapse of two Italian banks, including ‘Banco Ambrosiano’, whose chairman, Roberto Calvi, was later found hanging from Blackfriars bridge.Crisis then hit in January 2013 when Italy’s central bank blocked all electronic payments through cash machines and credit cards in Vatican City State, caused partly by the IOR failing to keep up to speed with new anti-money laundering rules. These laws were brought in following 9/11 in order to prevent the financing of terrorism. All this meant some cardinals wanted Pope Francis to close down the bank, arguing that St Peter did not have a bank account. This was a view shared by Francis but he later agreed to keep the IOR open provided it was reformed.”
A Step Back
Let’s take a step back. What is the Vatican bank, and how does it earn its money?
The IOR administers about 15,000 accounts worldwide for religious orders, various Church organizations, and individuals.
Through the bank, the Holy See helps its depositors to move funds to support religious initiatives, like missions, convents, schools and clinics, in places from Brazil to South Sudan to India.
The IOR strives to serve the global mission of the Catholic Church through the administration of the entrusted assets and providing payment services to the Holy See and related entities, religious orders, other Catholic institutions, clergy, employees of the Holy See and the accredited diplomatic bodies,” the report states (p. 13).
The bank invests the funds entrusted to it in very conservative ways, the report says.
“On behalf of its clients,” the report says, “the Institute carries out financial activities… and offers the following services: acceptance of deposits, asset management, certain custodial functions, international payment transfers through correspondent banks, and holding salary and pension accounts of employees of the Holy See and the Vatican City State. The Institute protects its clients’ assets by primarily investing in financial instruments characterized as very low risk (e.g. government bonds, bonds issued by institutions and international organizations, as well as deposits in the interbank market).” (pp. 13-14)
So, can we get a clearer idea of who actually uses the bank?
“Measured by assets entrusted, the most important group of clients, was religious orders,” the report states. “They accounted for more than half of our client base in 2016 (54%), followed by Roman Curia departments, Holy See Offices and nunciatures (11%), entities of Canon Law (9%), cardinals, bishops and clergy (8%), episcopal conferences, dioceses and parishes (8%), with the remainder split between various others, such as Vatican employees and pensioners and Canon Law foundations.” (p. 25)
One question I have is why among the clients there can be a few “dioceses and parishes” (if they have 8% of the total asset under management of $6.3 billion, then they have some $500 million on deposit at the bank) and not an account for every diocese and parish in the world. Why not? I do not know the answer to that question. Of course, having every Catholic diocese and parish in the world open an account at the Vatican bank would arguably make the Vatican bank, for funds deposited, one of the largest, if not the largest, in the world.
The report explains the income figures this way: “In 2016, IOR’s Net profit was EUR 36.0m (2015: EUR 16.1m). The increase from 2015 was mainly due to improved results from Net Income for trading activities, to theremeasurement of a provision for tax remediation to foreign countries recognized in 2015 and to the decrease in Administrative expenses… The most significant source of revenues is the profit derived from Treasury activities on proprietary portfolios. The most important component was derived from bond yield which contributed for EUR 39.6 million (interests EUR 38,0 million plus trading results EUR 1.6 million).” (p. 25)
So, from this passage we learn that the increase in income that the Vatican bank earned in 2016 derived from:
1) trading activities gave improved results
2) recalculating taxes owed to various countries (apparently, recalculating down) allowed higher profits
3) less overhead in the offices themselves enabled greater profits
4) bond yields provided almost all of the profits
The report says “bond yields” provided 38 million euros, and “trading in bonds” 1.6 million euros, for a total of 39.6 million of profit during 2016.
And the total profit for the year was only 36 million euros. So there had to be some losses somewhere else.
And there were. In trading activities.
The report says, “Net Income for trading activities recognized a net loss of EUR 9.0m compared to a net loss of EUR 15.4m in 2015.” 
So, both in 2105 and 2016, the IOR traders lost millions of euros.
“The result,” the report says, “was mainly affected by the decrease in UCI unit investment compared to 2015, amounting to EUR -12.8 million. The improvement in the results was mainly due to the positive performance of the bonds held in the proprietary portfolio in 2016, compared to 2015, to market trends during the year.”
So, in short, there was a 12.8 million euro loss due to a decline in the “UCI unit investment” (not sure what that was, and I do not see it defined anywhere in the report).
So, from this report, we are told that the main culprit for the loss was a single “bad trade.”

We are also told that the Vatican bank traders made a profit of… 94,000 euros (just a bit more than $100,000) in trading stocks(!).
“Equity securities,” the report says, “recorded a profit of EUR 94,000 in 2016, versus a loss of EUR 307,000 in 2015, while FX activity contributed for EUR 2.0 million versus EUR 1.9 million in 2015.” (FX activity refers to trading in currencies.)
Still, there is no list of stocks bought or sold. Again, we have no idea if the Vatican bank bought gold mining shares or technology stocks or bank stocks or consumer goods stocks — such details are not part of this report.
We do glimpse a bank that is shedding employees, slowly.
“Administrative Expenses were EUR 19.1m in 2016 (2015: EUR 23.4m),” the report says. So there were 4.3 million euros less spent on administering the bank. 
The report continues: “This includes Staff Expenses of EUR 10.2m in 2016, in reduction with the prior year amount (2015: EUR 11.3m, or – 9.1%). As of December 31, 2016, the IOR had a total of 102 personnel (2015: 109). During the year, six employees retired and one resigned.”
So, the banks spent 1.1 million euros less on salaries in 2016 than in 2015, and dropped from 109 to 102 staff people. (If those 7 people together were earning the 1.1 million euros saved, they were earning an average of 157,200 euros each, or close to $175,000 each.
And: “Administrative expenses also include expenses for professional services, which decreased from EUR 7.6m in 2015 to EUR 4.0m in 2016. This was due to lower extraordinary costs incurred during the year from the completion of certain projects.”
So the bank spent 3.6 million euros less on “professional services” — that is close to a $4 million saving.
We come to the “bottom line” results on page 129 of the report, where these figures are given (I give the text of the statement in italics):
The Financial Statements may be summarized as follows:
BALANCE SHEET
                                EUR000 [Note: meaning figures require adding 3 zeros]
Total assets                                       3,268,890
Total liabilities                                 2,596,290
Net assets                                            672,600
PROFIT AND LOSS ACCOUNT
Net result from financial activities     42,762
Net operating profit                            36,001 
Profit available for distribution         36,001   
The IOR Press Release explaining the 2016 statement is as follows:
Vatican City, 12 June 2017 – For the fifth year, the Istituto per le Opere di Religione (IOR) has published its financial statements.
The financial statements have been audited by the independent audit firm Deloitte & Touche S.p.A.
The Board of Superintendence of the Istituto per le Opere di Religione unanimously approved the 2016 financial statements on April 26 and proposed to the Cardinals Commission the distribution of the entire amount of profits to the Holy See.
In 2016 IOR has continued to serve with prudence and provide specialized financial services to the Catholic Church worldwide and the Vatican City state. The highlights are as follows.
  • In 2016 the IOR served nearly 15,000 clients worldwide who entrusted to the IOR assets worth Euro 5.7 billion at the end of the year (Euro 5.8 billion in 2015), of which Euro 3.7 billion related to assets under management and under custody. Many initiatives were taken throughout the year to increase customer focus in accordance with IOR’s mission.
  • The Institute continued to reduce its operational expenses, which decreased to Euro 19.1 million from Euro 23.4 million in 2015 notably due to rationalisation of contracts with service providers.
  • The 2016 operating income was Euro 44.1 million (Euro 45.4 million in 2015). The major contribution (Euro 46 million) came from the management of IOR’s balance sheet (proprietary portfolio). The net result was Euro 36 million (Euro 16.1 million in 2015).
  • This result has been achieved thanks to a prudent approach in managing IOR’s investments in a year characterised by high volatility, global political uncertainty due to unexpected outcomes of major electoral events and low interest rates.
  • As of 31 December 2016, the Institute’s equity — net of distributed profits — amounted to Euro 636.6 million, corresponding to a 64.5% CET1 ratio, highlighting high solvency and low risk profile.
  • Other achievements

    In addition to achieving those economic and financial results, the Institute has also met the organizational objectives envisaged by the 2016 business plan, among which the most important were:
– IOR’s governance, risks control and compliance in general
The IOR has consolidated and strengthened its internal governance and internal control system. The Institute has notably defined and implemented a Risk Appetite Framework, and has continued to adapt to the new AIF regulatory framework whilst seeking consistency with international best practices.
– Disclosure and tax matters with the Republic of Italy
The Agreement between the Republic of Italy and the Holy See on tax matters entered into force on the 15th of October 2016. It opened the way to the inclusion of the Holy See in the tax “white list” of the Republic of Italy on the 23rd of March 2017.
Visit www.ior.va website for further information.
The Moynihan Letters are posted here.
Note: The Moynihan Letters go to more than 21,000 people around the world. If you would like to subscribe, simply email me an email address, and I will add you to the list. Also, if you would like to subscribe to our print magazine, Inside the Vatican, please do so! We appreciate all new subscribers very much. You might even consider purchasing a gift subscription for a friend, a student, a grandchild, a parish priest. Thank you. To subscribe, click here.
What is the glory of God?
“The glory of God is man alive; but the life of man is the vision of God.” —St. Irenaeus of Lyons, in the territory of France, in his great work Against All Heresies, written c. 180 A.D.

ANNUAL
REPORT 2016
Istituto per le Opere di Religione
Cortile Sisto V
00120 Vatican City State
Vatican City State

Registered under No 1 in the Register of Legal Persons
held at “Governatorato” of Vatican City State
Authorization n. 1 of 10/07/2015 issued by AIF,
to carrying out on a professional basis financial activities at Vatican City State
digital copy on site www.ior.va
“Money must serve,
not rule.”
His Holiness Pope Francis, Evangelii Gaudium, 2013

5
TABLE OF CONTENTS
PRESIDENT OF THE COMMISSION OF CARDINALS’ MESSAGE 7
PRELATE’S MESSAGE 8
MANAGEMENT REPORT 9
CHAPTER 1. STRATEGIC INFORMATION 11
1. President of the Board of Superintendence’s Message 11
2. Mission, Customers and Services 13
3. Corporate Governance 14
4. IOR Organization Chart 21
5. Regulatory Framework and Tax Requirements 21
6. Proposal of Distribution of the Net Profit For the Year 26
CHAPTER 2. OPERATIONAL INFORMATION 27
1. 2016 Business Review 27
2. Forecast for 2017 28
FINANCIAL STATEMENTS 31
Balance Sheet 33
Income Statement 34
Statement of Comprehensive Income 35
Statement of Changes in Equity 35
Cash Flow Statement 36
Explanatory Notes 38
Part 1. Accounting Policies 38
Part 2. Information on the Balance Sheet 61
Part 3. Information on Income Statement 82
Part 4. Information on Comprehensive Income 92
Part 5. Information on Risks and Hedging Policies 95
Part 6. Information Concerning Equity 119
Part 7. Related Party Transactions 123
REPORT OF THE REVISORI 125
REPORT OF THE EXTERNAL AUDITORS 131
The present Annual Report has been translated from the original one which is prepared in Italian
IOR
Annual report 2016

7
PRESIDENT OF THE COMMISSION OF CARDINALS’ MESSAGE
The presentation of an annual report provides a convenient opportunity to do a double internal
examination. The first one relates to the last year and the second one refers to the current year, or
better, the future years.
It seems to me that this rule can be applied to the presentation of the IOR annul report for the year
2016. In it, like every human work, one can find anxieties of great success, overcoming complex
or inherited situations, To offer a service appropriate for everyone’s mission, personal contribution
to a cause that is worth serving for professional reasons or for high ethical, religious or humanitarian
inspiration. I think this can be behind the figures presented in the IOR 2016 annul report.
But along with the best dispositions and personal efforts, there is also the stubborn realities of global
economic and financial performance and the recurrent volatility phenomena that often complicate
predictions and expectations.
In this complex context, during the year 2016, the effort of all the members of the large family of
IOR, ecclesiastical or laity servants, each in its place of responsibility at the various levels, took place.
But they come together to serve a global cause with that ethical and exemplary sense that the Holy
Father rightly claims from us all and from each of us. This is His first directive and first requirement,
and not efficiency at any cost.
In this line, as President of the Commission of Cardinals, I feel the duty to express the most heartfelt
thanks to the Cardinals, the Prelate, the Board Members, the Directorate, the Revisori and the
whole staff of our Institute. Allow me to remind all of us that the Holy Father, as he has clearly indicated
on several occasions, requires competent and effective collaborators, but always guided by
inalienable ethical principles, both inside and outside, as servants of the Church. It is our duty to
continue to improve our services in the years to come.
IOR
Annual report 2016
Cardinal Santos Abril y Castelló
President of the Commission of Cardinals
Istituto per le Opere di Religione
8
PRELATE’S MESSAGE
I wish to add my own to the authoritative voices of the Cardinal President of the Commission of
Cardinals’, the President of the Institute and the Director General simply to express my thanks to
all those who, through their commitment and work, have over the past year contributed to renewing
the way the Institute operates. Thanks to them, one step at a time, the IOR has increasingly
been becoming an entity that serves the Church straightforwardly and in a humble way, aware of
its importance in connection with supporting the Holy See’s and Catholic religious organisations’
practical activities, and developing a conscience whereby the Institute is no longer viewed almost
as a separate and independent entity but rather as one that takes as the reason for its very existence
its subordination to projects targeted only to the real needs of Catholics works and not to making
money for the sole purpose of making money. If thanks to management centred on Catholic social
ethics there is money, that is positive, and if for whatever reason at times there is less than expected,
never mind. The Lord will always lend His support to those who trust in Him: even “re oeconomica”.
In these days of Easter, the people who work in our Institute ought to reflect upon the words Pietro
said to the lame man: “Silver or gold I do not have, but what I have I give you: in the name of Jesus
Christ of Nazareth, get up and walk!” (Acts 4-6). So we must go forward bravely, without ever
forgetting that there is One above us who guides events and this should give us confidence but also
a great sense of responsibility.
IOR
Annual report 2016
Msgr. Battista Mario Salvatore Ricca
Prelate
Istituto per le Opere di Religione
MANAGEMENT REPORT

11
CHAPTER 1
STRATEGIC INFORMATION
1. PRESIDENT OF THE BOARD OF SUPERINTENDENCE’S MESSAGE
Sinceits appointment in July 2014, the Board of Superintendence has worked on the necessary transformation
of the IOR to serve with Prudence the Holy Father in fulfilling his mission as Universal
Pastor. This meant focusing on the nature and the quality of services offered to clients and to
the Church in a complex financial environment, the establishment of a framework with stronger
and clearer governance principles, strict compliance with applicable laws and regulations including
anti-money laundering procedures, the improvement of internal controls and risk management,
the execution of tax agreements with the United States of America and Italy, and the review of legal
issues in coordination with the appropriate Vatican authorities.
In 2016, the IOR has continued to make progress in rolling out the reform plan agreed upon by
the Board, supported by the new Directorate and the work of all its employees. In doing so, the
Board has given consideration to the words of the Holy Father regarding its particular responsibility
and particularly “the responsibility of guiding the institute’s strategic development in accordance
with its mission to serve, the Board should never lose sight of the ethical dimension of the choices
made in providing strategic guidance, recognizing that ethics is first and foremost in governing the
IOR, and may never be subordinated to profit, nor open to compromise”.
Collaboration between the Board and the Directorate
According to the Statute of the IOR, the Board has approved the business plan for 2016 which was
the continuation of the 2015 plan with a core focus on ethics and customer satisfaction and has
assisted the Directorate in its execution. It included the need to address the quality, reliability and
sustainability of investment solutions offered as well as the technical support offered to IOR client
base.
In addition, the Board has worked with the directorate towards strengthening the overall organization
including:
1. Ensuring compliance with law XVIII and Regulation No.1;
2. Strengthening the control functions with clearer governance principles;
3. Addressing human resource issues, such as increasing staff training, strengthening internal communication,
and hiring appropriate resources;
Jean-Baptiste de Franssu
President of the Board of Superintendence
Istituto per le Opere di Religione
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Annual report 2016
12
4. Consolidation of the IT infrastructure;
5. Revising and strengthening the existing governance policy where necessary;
6. Continuation of the efforts of building new relationships with Italian banks, particularly in
the context of the tax agreement with Italy;
7. Continuing to reduce administrative costs, including dependency on outside consultants;
8. Developing a Risk Appetite Framework (RAF) for the IOR and reinforcing the risk-sensitive
approach and the Catholic investment criteria in the investment process as to strengthen the
quality of its products;
9. Addressing legacy issues to which IOR is exposed in coordination with the Vatican regulator
and judicial authorities.
Significant efforts were also made to allow the IOR to be FATCA compliant and, in addition, in
October, the Agreement between the Government of the Republic of Italy and the Holy See on tax
matters became effective. Both of these events represented a major milestone for the IOR and are
a very important step in all the efforts made to bring full transparency in the operations of the IOR.
The Board, after meeting with the Revisori and the external auditors, approved the Institute’s accounts
and the management report for 2016, ensuring compliance with applicable requirements
and new recommendations introduced by the AIF.
The net result for 2016 is Euro 36 million. This results – whose details are provided in “Financial
Statement” Section – reflects the continuous down trend of interest rate in Europe and the conservative
approach that the Institute has adopted on managing its assets since 2014. As described in
Management Report, Section 2, Part 1 – 2016 Business Review, this was achieved in a year of complex
financial and political evolutions.
In the meeting of the Board of Superintendence on 26 April 2017, attended by both the members
of the Revisori and the external auditors, the financial statements for 2016 and the proposed distribution
of profits to be made to the Holy See for 2016 were discussed and approved. As per the
Statutes these informations were provided to the Commission of Cardinals to enable them to decide
on the allocation of profits. The financial statements, prepared in accordance with IFRS, as
adopted by the Circular issued by the AIF, have been audited by Deloitte & Touche S.p.A.
2017 and beyond
All the efforts lead by the Board since 2014 will continue in 2017. Improving client experience at
IOR, working towards full compliance with AIF regulations, continuing its commitment to AntiMoney
laundering, working on the evolution of certain aspects of the IOR’s business model, developing
IOR’ approach to faith investing, furthering the work on governance, and consolidating
the role of the control functions will represent the Board’s main objectives.
Acknowledgements
I would like to thank all the Board members for their support, their contribution and their dedication.
Many of them have devoted a considerable amount of their time to help guide the IOR
through this year of transition and change.
In 2016, the Board has continued to strive towards building a close working relationship with the
Commission of Cardinals. I wish to extend my gratitude to the president and all the members for
their availability and support.
I also wish to express my appreciation for the work of Gian Franco Mammì, the Director General,
the Prelate Mgr. Ricca and to all employees of the IOR.
The work performed by the members of the Revisori and the external auditors have also been critical
to the progress made by the IOR.
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2. MISSION, CUSTOMERS AND SERVICES
Mission of the Institute
The Istituto per le Opere di Religione (the “Institute” or “IOR”) is an institution of the Holy See,
founded on 27 June 1942 by Chirograph of His Holiness Pius XII. Its origins date back to the
“Commissione ad Pias Causas” established by Pope Leo XIII in 1887.
The mission of the IOR, established by its Statute, with reference to the Chirograph dated 1 March
1990 of His Holiness John Paul II, is “to provide for the custody and administration of goods transferred
or entrusted to the Institute by natural or legal persons, designated for religious works or charity.
The Institute can accept deposits of assets from entities or persons of the Holy See and of the
Vatican City State”.
The IOR strives to serve the global mission of the Catholic Church through the administration of
the entrusted assets and providing payment services to the Holy See and related entities, religious
orders, other Catholic institutions, clergy, employees of the Holy See and the accredited diplomatic
bodies.
The IOR is exclusively located on the sovereign territory of the Vatican City State and subject to
the regulations and legislation applicable therein. The IOR is supervised and regulated by the “Autorità
di Informazione Finanziaria” (AIF).
Customers of the IOR
Customers served by the Institute include:
a) Institutional counterparties (Sovereign Institutions of the Holy See and Vatican City State and
related entities, nunciatures and apostolic delegations, embassies and diplomats accredited to
the Holy See);
b) Non-institutional counterparties (Institutes of Consecrated Life and Societies of Apostolic Life,
Dioceses and other Vatican legal canonical or civil entities as legal persons; clerics and members
of Institutes of Consecrated Life and Societies of Apostolic Life, employees and retirees
of the Vatican as natural persons).
Most of the IOR’s clients are active in missions or perform charitable works at institutions such as
schools, hospitals or refugee camps.
The Catholic Church, through its institutions involved in missionary activities and charitable works,
is present throughout the world, even in countries with very basic infrastructure and underdeveloped
banking and payment systems.
In such cases, the IOR’s services are particularly valuable. For customers located in these areas, the
IOR is a bedrock, affirming itself as a trusted institution able to provide on-site services otherwise
lacking or absent. This is even more evident in those geographic areas with high political financial
instability.
Nature of the Institute’s services
On behalf of its clients, the Institute carries out financial activities authorized by the AIF, and offers
the following services: acceptance of deposits, asset management, certain custodial functions,
international payment transfers through correspondent banks, and holding salary and pension accounts
of employees of the Holy See and the Vatican City State.
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The Institute protects its clients’ assets by primarily investing in financial instruments characterized
as very low risk (e.g. government bonds, bonds issued by institutions and international organizations,
as well as deposits in the interbank market).
Credit activity is residual and strictly subject to constraints of the internal policies as established
by the Board of Superintendence.
The IOR does not issue, underwrite or place securities.
Accounts opened at the IOR by authorized customers meet the requirements of the legislation on
preventing and combating money-laundering and the financing of terrorism in force in the Vatican
City State.
Customers are provided with services in IOR offices located in the Vatican City State. The IOR
has no other locations.
3. CORPORATE GOVERNANCE
The IOR’s governance structure is defined in its current Statutes. It consists of five bodies: Commission
of Cardinals, Prelate, Board of Superintendence, Directorate and the Revisori.
The Commission of Cardinals oversees the Institute’s adherence to its Statute. It appoints and removes
members of the Board of Superintendence.
Furthermore:
– It deliberates, after considering the financial statements and taking into account IOR’s own financing
needs, the distribution of profits;
– It proposes to the High Authority changes to the Statute;
– It deliberates the compensation due to members of the Board of Superintendence;
– It approves the appointment and removal of the Director General and of the Vice-Director made
by the Board of Superintendence;
– Resolution of any issues concerning the members of the Board of Superintendence and the Directorate.
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Annual report 2016
Members of the Commission of Cardinals are appointed for a five year term, and can be reappointed.
The current members are:
Cardinal Josip Bozanic Archbishop of Zagabria
Cardinal Santos Abril y Castello President
Archpriest of the Papal Basilica of St Mary Major
Cardinal Christoph Schönborn Archbishop of Vienna
Cardinal Pietro Parolin Secretary of State Cardinal Thomas Christopher Collins
Archbishop of Toronto
Cardinal Jean-Louis Tauran President of the Pontifical Council
for Interreligious Dialoue
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The Prelate is appointed by the Commission of Cardinals. The Prelate:
– Oversees the activities of the Institute and may have access to its acts and documents;
– Participates, as Secretary, in meetings of the Commission of Cardinals, drafting the minutes
of the meeting;
– Attends the meetings of the Board of Superintendence;
– Submits his comments to the Commission of Cardinals, notifying the Board of Superintendence.
Msgr. Battista Mario Salvatore Ricca was appointed as the Prelate of
the Institute in June 2013.
The Board of Superintendence is responsible for the administration and management of the Institute,
as well as the oversight and supervision of its financial, economic and operational activities.
In particular, the Board has the task of:
– Formulating general policy guidelines and basic strategies for the activities of the Institute in
line with its mission;
– Defining the criteria for the implementation of annual programs and objectives of the Directorate,
and approving its proposals;
– Verifying the economic-financial activities of the Institute;
– Monitoring compliance with established programs and objectives, with regard to investments
and other activities;
– Defining the most appropriate financial structure for the Institute, proposing the ways to improve
it, and in general, the best means to increase its assets and activities in the context of correct
adherence to economic-financial rules and in full compliance with the overall mission of
the Institute;
– Proposing to the Commission of Cardinals changes to the Statutes as long as they are unanimously
approved by the Board of Superintendence;
– Arranging for the issuance of the Institute’s Regulations, which are required to provide a detailed
description of the powers and competencies of the Board and of the Directorate;
– Delegating signing power in the name of the Institute to the Director General and, at their request,
the Vice-Director, Managers and Officers, in the manner prescribed in the Regulations;
– Approving the Financial Statements prepared by the Directorate.
The members of the Board of Superintendence are nominated by the Commission of Cardinals and
serve for a five year term, and can be reappointed. The Board consists of 7 members.
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Annual report 2016
Jean-Baptiste de Franssu Mary Ann Glendon
President
Michael Hintze
Mauricio Larrain
Georg Freiherr von Boeselager
(since December 2016)
Scott C. Malpass
(since December 2016)
Javier Martin Romano
(since December 2016)
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The Board of Superintendence fully performed its duties as defined by law and applicable procedures.
It continued to advise and supervise the Directorate in rolling out the agreed reform plan
and provided support for strategically important issues relating to the future development of the
IOR.
In December 2016, 3 new members were appointed to the Board following notably the resignations
of Dr. Carlo Salvatori and Dr. Clemens Boersig. The Board wishes to express its gratitude to
Carlo Salvatori and Clemens Boersig for all the help and counsel they provided to the IOR during
their tenure. The 3 new members, formally appointed on December 15, 2016, are Georg Freiherr
von Boeselager, Scott Malpass and Javier Marin Romano.
In 2016, the Board of Superintendence convened for six meetings and dealt with the strategic and
operating development of the IOR. All members participated in the meetings of the Board of Superintendence
and the committees to which they belong to for the year under review.
The Board continued its work on strengthening IOR standards of corporate governance.The meetings
of the Board of Superintendence continued to represent an open exchange of information and
ideas to find the appropriate resolutions to meet the needs of this unique institution. During these
meetings, the Board benefitted from each member’s specific expertise in various subject matters, and
the Board also held regular executive sessions to discuss specific topics in-depth.
Once approved, the minutes of all Board meetings were shared with the Revisori, the Directorate,
the Prelate and the Commission of Cardinals. During the year, the Board passed resolutions on a
number of matters after careful analysis and consultation, and in close coordination with the Directorate
and the Commission of Cardinals, for which the Board’s consent was mandatory.
In 2015, the Board created two Board committees to strengthen the Governance of the Institute
and the Board’s work, although such committees were not yet provided for by the Statute. An Audit
& Risk and HR & Remuneration committees were first established. In 2016, the Board created
a Past Abuses Committee to help and support the Board in its work of understanding and concluding
the investigation of legacy issues to which IOR was exposed. The Committee completed
its work at the end of January 2017, which included a thorough review of all cases and issued a detailed
set of recommended legal actions. The results of this work has been filed with Vatican Regulator
and Vatican Judicial Authorities.
Minutes were drafted for each committee meeting and distributed to all Board members, along with
a specific report presented by the respective presidents of those committees at each Board meeting
and an annual report at year end.
a) Members of the Human Resources and Remuneration Committee
Mary Ann Glendon – Chair
Carlo Salvatori (until May 2016)
Jean-Baptiste de Franssu (ex officio)
Mauricio Larrain
In attendance: Mario Busso, President of Revisori
b) Members of the Audit and Risk Committee
Sir Michael Hintze – Chair
Leslie Ferrar (non-board member)
Clemens Boersig (until May 2016)
Jean-Baptiste de Franssu (ex officio)
Wiet Pot (non-board member)
In attendance: Mario Busso, President of Revisori
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c) Members of the Past Abuse Committee (June 2016 – January 2017)
Jean-Baptiste de Franssu – Chair
Sir Michael Hintze
In attendance: Giovanni Barbara, Member of Revisori
A focus was made in 2016 on the development of appropriate control functions, reinforcing their
independence and ensuring that activities and controls were properly carried out. Today, they are
comprised of:
– Internal Audit
– Risk management and Compliance
In accordance with law no. XVIII/2013 (see art. 27 et seq.) and best international practices, the Internal
Audit function reports to the Board with a dotted line to the Directorate.
In terms of second-level controls, Risk management and Compliance department is directly responsible,
among other things, for the AML/CFT (Anti Money Laundering/Combating the Financing
of Terrorism) activities.
The Revisori and the External Auditors have regularly and thoroughly carried out their activities during
2016, as expected.
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Annual report 2016
The Directorate is responsible for all operational activities of the Institute and is accountable to the
Board of Superintendence.
The Directorate is appointed by the Board of Superintendence and approved by the Commission
of Cardinals and consists of:
The Revisori must:
– Verify at least quarterly, the administrative and accounting review of the Institute’s books and
records;
– If requested by the Board of Superintendence, the Revisori may conduct internal audits or other
inspections;
– Review the financial statements including the report of the Directorate and supporting documents,
provide written comments to the Board of Superintendence and present their observations
to the attention of the Directorate and the Prelate.
The Revisori consists of three members, appointed by the Board of Superintendence for a maximum
period of three years. They can be reappointed.
Current members are:
– Mario M. Busso, President of the Revisori
– Giovanni Barbara
– Luca Del Pico
Giulio Mattietti
“Aggiunto al Direttore”
with delegated functions
Gian Franco Mammì
Director General
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21
4. IOR ORGANIZATION CHART
5. REGULATORY FRAMEWORK AND TAX REQUIREMENTS
Regulatory framework
The Institute is subject to the laws and regulations of the Holy See and Vatican City State.
The Vatican legal framework recognizes the Canon Law as the primary source of legislation and
the primary criterion for its interpretation. Furthermore, there are six organic laws and other ordinary
laws specific to the Vatican City State. For matters not covered by Vatican laws, laws and
other regulations issued by the Italian Republic are observed as supplementary, subject to prior approval
by the competent Vatican authority.They are adopted on the condition that they do not conflict
with the doctrine of divine law, the general principles of Canon Law or the provisions of the
Lateran Pact and subsequent Agreements, and provided that they are applicable to the state of affairs
existing in Vatican City (See law No LXXI on the source of law, promulgated by Pope Benedict
XVI on 1 October 2008).
According to article 1.4 of Law no. LXXI on the sources of law, the legal framework must also conform
to the general norms of international law, and to those arising from treaties and other agreements
to which the Holy See is part of.
The Institute is subject to Law no. XVIII of 8 October 2013 that covers norms of transparency,
supervision, and financial intelligence and, as an entity that carries out financial activities on a professional
basis in Vatican City State, it is also subject to Regulation No. 1 “Prudential Supervision
of Entities carrying out financial activities on a professional basis” issued by AIF and enacted on
13 January 2015.
The Regulation No. 1, establishing a clear system of authorization, stipulates the criteria for the organization
and management of entities and mechanisms of internal control.
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Annual report 2016
DIPARTIMENTO
BILANCIO
DIPARTIMENTO
IT E SICUREZZA
DIPARTIMENTO
OPERATIONS
DIPARTIMENTO
FINANZA
DIPARTIMENTO
GESTIONI
PATRIMONIALI
DIPARTIMENTO
RAPPORTI CON
LA CLIENTELA
COMMISSIONE CARDINALIZIA
PRELATO
RISK MANAGEMENT
E COMPLIANCE
SEGRETERIA
DI PRESIDENZA
LEGALE
INTERNAL AUDIT
RISK MANAGEMENT
COMPLIANCE ED
ANTIRICICLAGGIO
CONSIGLIO DI SOVRINTENDENZA
DIREZIONE SEGRETERIA
DI DIREZIONE
SEGRETERIA
AMMINISTRATIVA
ORGANIZZAZIONE E
RISORSE UMANE
DIPENDENZA FUNZIONALE DIPENDENZA GERARCHICA DIPENDENZA AMMINISTRATIVA
On 15 December 2016, the AIF promulgated the “Circular relating to the preparation of the annual
financial statements and the consolidated financial statements of entities carrying out financial
activities on a professional basis”. These financial statements have been prepared in accordance
with the aforementioned Circular.
Tax requirements
On 15 October 2016 the “Agreement between the Government of the Italian Republic and the Holy
See in tax matters” became effective. The Agreement had also a two-fold impact on the Institute’s
activities. In fact, the agreement provides for clients resident in Italy for tax purposes, on one hand,
the regularization of the client positions in the prior years from 2010 to 2015 and, on the other
hand, henceforth, that clients fulfill their tax debts through a Fiscal Representative chosen by the
Institute. Concerning previous years it has been provided by a specific implementing act of the Secretary
of State that the IOR assist its clients in compiling the instance with reference to the data
regarding the investments held at the Institute and the calculation of taxes due, in addition to all
the related administrative tasks. For the current and future period, the IOR must provide the calculations
and withhold taxes to customers which will be paid to the Italian Government via an Italian
tax representative.
This required significant efforts to be made prior to the affectiveness of the agreement and in the
following months. A specifictask force was established at the Institute to provide assistance to clients
with the calculation of the amounts due and related administrative activities.
Effective 2015, the IOR is subject also to the Foreign Account Tax Compliance Act (FATCA), a
United States federal law that requires U.S. persons, including individuals who live outside the
United States, to report their financial accounts held outside of the United States to the U.S. Internal
Revenue Service (IRS).
FATCA also requires foreign financial institutions to report to the IRS the accounts of their U.S.
clients. In this context, the Holy See has reached an Intergovernmental agreement (IGA) with the
United States signed in June 2015. Under the terms of the IGA, the Holy See is a jurisdiction treated
by the US Authorities as if the IGA was effective as of 30 November 2014, and the IOR has been
assigned an identification code (GIIN) by the IRS. The IOR fully complies with the terms of the
IGA.
6. PROPOSAL OF DISTRIBUTION OF THE NET PROFIT FOR THE YEAR
For the net profit for the year ended 31 December 2016 amounting to EUR 36.0m, the Board of
Superintendence intends to propose to the Commission of Cardinals, that the profits be distributed
in full without making any provision to the Reserves, also considering the adequacy of capital
(for further details see Part 6 – paragraph 6.2.2 “Capital adequacy”).
22
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Annual report 2016
CHAPTER 2
OPERATIONAL INFORMATION
1. 2016 BUSINESS REVIEW
Macroeconomic environment
Below is an overview of the macroeconomic environment that characterized 2016, with particular
reference to those markets and events that had the strongest influence on the performance of the
Institute’s portfolio.
In 2016, financial market trends were characterized by the sharp increase in uncertainty and there
were also several factors that increased risk aversion. In the first few weeks of the year, fears of a slowdown
in advanced economies intensified, first and foremost in the US economy, in addition to fears
of a contraction in the Chinese economy.The expectations of a new economic crisis that could have
a domino effect to all the international markets therefore increased. Concerns over China also affected
the market for raw materials and oil prices dropped to the lowest level of the year.
This turbulent start was followed by a mild recovery that lasted until the major electoral appointments
of the year, the British Brexit referendum, the US elections and the Italian constitutional referendum.
Although the outcomes were not what financial operators had hoped for, the markets
proved to be unexpectedly resilient. In the UK, the outcome of the referendum to decide on whether
or not to remain in the European Union resulted in a sharp devaluation of the Pound and led to
the adoption of expansionary monetary measures. In the United States, the “shock” of Trump’s victory
was instead short-lived. His victory was viewed as a turning point attributed to announcements
of implementation of fiscal stimulus measures, tax cuts and a corporate law reform, fuelling expectations
of higher inflation. In Italy, while the victory of the “No” vote on the constitutional reform
last December led to Prime Minister Renzi’s resignation, it did not result in the feared meltdown
on Italian government bonds.
At the macroeconomic level, 2016 was a year of modest growth for both Europe and the United
States, with contrasting trends during the year. US economic growth was lower than expected in
the first half. Indicators improved half way through the year, signalling the possibility of an increase
in manufacturing activity towards the end of the year. However, 2016 ended with a slowdown in
economic growth at 1.9% in the fourth quarter, although employment rates and incomes continued
to grow. In the Eurozone, there were conflicting economic indicators. Quarterly GDP growth
slowed during the April – June period, but the annual change remained sufficient to promote a grad- 23
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Annual report 2016
Gian Franco Mammì
Director General
Istituto per le Opere di Religione
ual improvement in the labor market with a steady absorption of the unemployment rate, which
still remains high. Inflation gradually increased towards the end of the year due to the rise in energy
prices.
Central Bank Monetary Policies continued to be expansionary in many countries over the year. In
March, the ECB cut interest rates, introduced new monetary stimulus measures extending, at least
until the end of 2017, the government bond purchase program in order to jump start economic
growth. By contrast, in the wake of the economic improvement, the US Federal Reserve decided
to raise interest rates by 25 basis points in December, widely expected by the market.
The bond markets reacted positively for most of the year. The ECB’s measures, combined with low
inflation, have lowered yields on government securities in all sectors, with the yield on German tenyear
bonds becoming negative. Italian government securities also benefited from the ECB’s purchase
program that helped keepTreasury bond yields low (10-yearTreasury bond yield was 1.25% in midyear,
after having peaked at 1.7% in February) and limited the spread on German bond yields during
turbulent market phases.Towards the end of the year, US, Japanese and EuropeanTreasury bond
yields rose significantly, resulting in a significant reversal of the bond curve as a result of a change
in the expectations of rising interest rates and expansionary fiscal policies aimed to counter weak
economic growth. Bond rates remained very low but with the risk of an increase.
During 2016 the stock market was severely affected by political events, with European stocks showing
lower yield trends compared to the US given the concerns about a possible disruption in the European
political scenario, also as a result of the UK referendum.The first nine months of 2016 were
characterized by pronounced volatility and heightened risk aversion among investors in the main
international markets, particularly, in the Eurozone and Asia. In June, the unexpected victory of the
“Leave” campaign in the Brexit referendum brought about a sharp downward adjustment in share
prices and a new increase in investors’ risk aversion (share prices in Italy experienced a sharp decline
with a mid-year high of -25%, with twice that on the Italian banking sector index) before recovering
towards the end of the year thanks to the improvement in the US economy, the continued flow
of liquidity provided by monetary policies and the expectations of procyclical fiscal policies.
Currencies were at the forefront of news reports in 2016, particularly in the UK following the outcome
of the referendum: in fact, the Pound immediately fell 10% against the dollar to close the year
at -16%. The Euro declined against the dollar, due to the increasing marked divergence in terms
of monetary policy. Overall, 2016 was another very positive year for the US dollar, against which
the Euro and the Swiss Franc, in addition to the Pound, lost value. Instead, the Japanese Yen held
its ground.
Lastly, with regards to raw materials, we experienced fluctuations in the prices of gold and oil. After
almost two years of decrease in the prior of oil, the major commodity indices seems to have stabilized,
going from 26 dollars per barrel in January 2016 to 50 dollars towards the end of year, in
part to the agreement reached by OPEC. Gold, as the main safe haven asset in times of high risk
aversion, peaked in the first half of 2016, having risen from its lowest price at 1061$/oz in December
up to 1370$/oz in July. In the second half of the year, except for the short-lived surge that followed
the election of Donald Trump, gold prices suffered to the point of reaching its lowest price
in 10 months: 1,122.35$/oz, mainly because of the FED’s announcement of an increase in interest
rates and the expectation of another three increases in 2017.
Composition of the Client base
At the end of 2016, the IOR had 14,960 clients (2015: 14,801), of which the vast majority, measured
by assets entrusted to the Institute, were legal persons under Canon Law.The IOR’s customers
have a common characteristic, which is that they are part of and serve the Catholic Church (seeclient
definition in Chapter 1). 24
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Annual report 2016
IOR
Annual report 2016
25
Measured by assets entrusted, the most important group of clients, was religious orders. They accounted
for more than half of our client base in 2016 (54%), followed by Roman Curia departments,
Holy See Offices and nunciatures (11%), entities of Canon Law (9%), cardinals, bishops
and clergy (8%), episcopal conferences, dioceses and parishes (8%), with the remainder split between
various others, such as Vatican employees and pensioners and Canon Law foundations.
In addition to depositing funds with us, we manage our clients’ portfolios of assets on their behalf
or act as custodians. As of 31 December 2016, the net value of assets held in managed portfolios
was EUR 3.1bn (2015: EUR 3.2bn), the net value of assets held in non-managed portfolios was
EUR 554.8m (2015: EUR 646.2m) and the value ofcustomer deposits was EUR 2.0bn (2015: EUR
1.9bn), resulting in EUR 5.7bn in total client assets (2015: EUR 5.8bn).
(in thousand Euro)
2016 2015
In Balance Off Balance Total In Balance Off Balance Total
Sheet Sheet Sheet Sheet
Customer deposits
(including Legates) 2,028,973 2,028,973 1,946,854 1,946,854
Assets under Custody 554,763 554,763 646,161 646,161
Assets under Management 410,563 * 2,700,366 3,110,929 424,815 2,760,870 3,185,685
Total 2,439,536 3,255,129 5,694,665 2,371,669 3,407,031 5,778,700
*Deposits of Assets Management are net of commissions collected in the first days of 2017.
Assets under Custody mainly include client-owned securities held at the IOR for custodial purposes.
The clients make all investment decisions and the IOR has no discretionary power to manage these
assets, provided that such decisions are in accordance with the role and mission of the Institute. For
the purpose of table above, securities, gold and precious metals under custody are stated at market
values.
Assets under Management consist mainly of client-owned securities held at the IOR for management
purposes. Investment decisions are made by the IOR on the basis of portfolio management
mandates signed with its clients. For the purpose of table above, securities under management are
stated at market values.
Income Statement
In 2016, IOR’s Net profit was EUR 36.0m (2015: EUR 16.1m).Theincreasefrom 2015 was mainly
due to improved results from Net Income for trading activities, to the remeasurement of a provision
for tax remediation to foreign countries recognized in 2015 and to the decrease in Administrative
expenses.The results were partially offset by the decrease in Interest Margin and Net fee and
commission income.
A brief overview of the main components of the Income Statement is presented below.
The most significant source of revenues is the profit derived from Treasury activities on proprietary
portfolios.
The most important component was derived from bond yield which contributed for EUR 39.6 million
(interests EUR 38,0 million plus trading results EUR 1.6 milion).
Interest Margin amounting to EUR 36.7m decreased by 16% compared to EUR 43.6m in 2015.
This was mainly affected by the decline in the yield on investments in securities and bank deposits
and a decline in interest paid to customers, although the average amounts of capital invested re-
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Annual report 2016
26
mained unchanged at EUR 2.9bn (2015: EUR 2.9bn); The average rate on customer deposits declined
to 0.11% in 2016 from 0.22% in 2015, while the average yield on investments in securities
and bank deposits declined to 1.35% in 2016 from 1.64% in 2015. Accordingly, the spread
between the average rate received on assets and the average rate paid on liabilities decreased to 1.24%
from 1.42%.This was mainly due to the expiration of securities in 2016 purchased in previous years
with a nominal interest rate higher than those currently available on market.
Net Income for trading activities recognised a net loss of EUR 9.0m compared to a net loss of EUR
15.4m in 2015. The result was mainly affected by the decrease in UCI unit investment compared
to 2015, amounting to EUR -12.8 milion. The improvement in the results was mainly due to the
positive performance of the bonds held in the proprietary portfolio in 2016, compared to 2015,
to market trends during the year.
More specifically, debt securities recognised a positive total net profit, including gains and losses
from trading and gains and losses from valuation, amounting to EUR 1.6m in 2016 compared to
a loss of EUR 17.1m in 2015.
Equity securities recorded a profit of EUR 94,000 in 2016, versus a loss of EUR 307,000 in 2015,
while FX activity contributed for EUR 2.0 million versus EUR 1.9 million in 2015.
The value of UCI unit investment decreased by 2015 due to the write-down of an investment fund
held in the portfolio in addition to other losses for a total of EUR 12.8 million in 2016 versus EUR
149.000 in 2015.
Dividends increased by 7.8% to EUR 2.1m from EUR 2.0m in 2015.
Net Fee and Commission income decreased 15.9% to EUR 12.8m in 2016 from EUR 15.2m in
2015. Fee and Commission Income decreased 10.6% to EUR 15.8m in 2016, from EUR 17.7m
in 2015, while Fee and Commission Expense rose to EUR 3.0m in 2016 from EUR 2.5m in 2015
(+22.1%).
The most important component of the Fee and Commission Income was commissions from Asset
Management services, which decreased 8.7% to EUR 12.5m in 2016 from EUR 13.7m in 2015.
This was mainly due to the shift of some customers to asset management lines, mainly composed
by bond securities, with lower commissions than lines composed mainly by equity securities, that
the same clients owned before.
The increase in Fee and Commission Expense was mainly due to the fees paid for bank deposits
(EUR 571,000 in 2016), paid for the first time in 2016, and to the increase in commission paid
for custody and administration of securities, amounting to EUR 1.6m in 2016 from EUR 0.9m
in 2015. This is partially offset by the decrease in commission paid for trading in financial instruments,
which decreased to EUR 83,000 in 2016, from EUR 648,000 in 2015, due to the fact that,
starting from 2016, clients directly pay commissions on securities transactions whereas previously,
they were paid by the Institute and collected later.
Administrative Expenses were EUR 19.1m in 2016 (2015: EUR 23.4m). This includes Staff Expenses
of EUR 10.2m in 2016, in reduction with the prior year amount (2015: EUR 11.3m, or –
9.1%). As of December 31, 2016, the IOR had a total of 102 personnel (2015: 109). During the
year, six employees retired and one resigned.
Administrative expenses also include expenses for professional services, which decreased from
EUR 7.6m in 2015 to EUR 4.0m in 2016.This was due to lower extraordinary costs incurred during
the year from the completion of certain projects.
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Annual report 2016
27
Other administrative expenses slightly increased by 7.2% to EUR 4.9m in 2016 from EUR 4.6m
in 2015 due to higher costs incurred for maintenance.
Net provisions to risks and charges in 2016 amounted to a profit of EUR 13.0m (2015: loss of
EUR 16.5m) due to the reestimation of a tax provision for exposure in foreign countries recorded
in 2015.
Other Operating Income (Expense) recognised income of EUR 7,000 (2015: income of EUR
10.5m); the difference, compaired to the previous year, is mainly due to EUR 13.6m of extraordinary
income recorded in 2015 related to the closing of an issue from prior years.
Balance Sheet
As of 31 December 2016, total assets on the IOR’s balance sheet was EUR 3.3bn (2015: EUR
3.2bn), with equity of EUR 672.6m (2015: EUR 670.3m).
On the Liabilities side, Due to customers is the most significant line item, representing 92.4% of
total liabilities. The balance slightly increased from the prior year, amounting to EUR 2.4bn
(+3.3%). Customer deposits increased by EUR 75.5m, while asset management liquidity decreased
by EUR 14.3m.
Our clients expect a conservative approach in financial management by the IOR, with investments
in liquid securities and high quality credit risk. Investments in the stock market and similar financial
instruments are relatively limited and based on companies with strong fundamentals which generally
tend to pay high dividends.
No funding activities are carried out on the interbank market and IOR does not issue debt securities.
As previously reported in Chapter 1, credit activity is residual and strictly subject to constraints of
the internal policies as established by the Board of Superintendence.
The asset side of the balance sheet mainly reflects bank deposits and securities, and less than 3%
of total assets is held in UCI units and equities.
Bank Deposits totaled EUR 643.2m at the end of 2016 (2015: EUR 644.1m). These mainly consisted
of EUR 457.6m in deposits on demand (2015: EUR 265.4m), and EUR 108.5m in term
deposits in the interbank lending market (2015: EUR 292.5m). The remaining part, EUR 77.1m
(2015: EUR 60.7) concerned term deposits with APSA.
The value of IOR Securities (debt securities, equity securities and investment funds) was EUR 2.5bn
in 2016 (2015: EUR 2.3bn). Bonds, at EUR 2.4bn, were the most significant investments, representing
96.3% of the securities held as of 31 December 2016, while equities accounted for 2.4%,
and investment funds for 1.3%. As previously explained, the volume of the securities in the portfolio
slightly increased compared to 2015, while the portfolio composition remained unchanged.
Profitability ratios
The table below highlights the main economical, financial and productivity ratios:
Profitability ratios (%) 2016 2015
ROE (Returns on Equity) 5.66% 2.47%
ROA (Returns on Assets) 1.10% 0.50%
Operating costs / Earnings margin 15.52% 66.05%
Interest margin / Earnings margin 83.15% 96.03%
Net fee and commission income / Earnings margin 29.05% 33.51%
Interest margin / Total Assets 1.12% 1.36%
Earnings margin / Total Assets 1.35% 1.42%
The ratios ROE and ROA recorded an increase compared with the previous year due to the increase
in Net profit.
The profitability, explained from the ratio “interest margin / total assets”, amounted in 2016 to
1.12% against 1.36% recorded in 2015, due to the reduction of interest margin; the ratio “earnings
margin / total assets” recorded almost a result in line with the previous year (1.35% in 2016,
1.42% in 2015).
These two ratios showed that the Institute ability to create income slightly decreased, but the negative
effects were balanced by the decrease of operating costs, showing good flexibility in reacting
promptly to market changes.
Other aspects
The IOR does not issue securities, neither underwrite or place securities; it protects its client assets
by primarily investing in financial instruments characterized as very low risk (e.g. government
bonds, bonds issued by institutions and international organizations, as well as deposits in the interbank
market).
The IOR has no branches and provide services only at the IOR office located in the Vatican City
State.
The Institute owns 100% of the real estate company SGIR S.r.l., with registered office in Italy. The
Institute has a long-term zero-interest loan to its subsidiary SGIR S.r.l., amounting to EUR 3.3m.
During 2015, the Institute signed a loan agreement for the use of 4 real estate properties at no cost
with its subsidiary SGRI S.r.l. During 2016, SGIR S.r.l. did not earn rental income on these properties.
2. FORECAST FOR 2017
In the first months of 2017, the Institute’s activity was in line with the Strategic Plan approved by
the Board of Superintendence in January 2017.The main objective is to improve the quality of services
offered to clients. The forecast for 2017 is a stable base of customer deposits, a result of a balance
between the outflows due to the tax agreements signed between the Holy See and other countries
and inflows due to the increased quality of services offered. By the end of 2018, the results of
this work should be apparent.
The effort, already undertaken in recent years, to comply with Holy See laws and regulations and
international best practice will continue to be implemented.The same will apply with international
tax matters. 28
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Annual report 2016
The issues of transparency and reputation will obviously be the core in this process of growth; many
steps and activities have been taken from 2013 to make the Institute more transparent and aligned
with international best practices.
The IOR will continue to operate in accordance with his Mission that is to serve the Holy Father
with prudence, in His mission as the Universal Pastor, through the provision of dedicated financial
advisory, in complete compliance with Vatican and international laws in force and with what
the Holy Father said “the main goal of the IOR cannot be to have the maximum possible gain, but
should be goals that are compatible with the norms of morality, consistent efficiency and practices
respecting the specificity of its nature and exemplarity in its mode of operation”.
29
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Annual report 2016

FINANCIAL STATEMENTS

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Annual report 2016
33
BALANCE SHEET
IOR financial statements for 2016 are prepared in accordance with the Circular concerning the annual
financial statements and the consolidated financial statements of entities carrying out financial
activities on a professional basis, issued by Authority of Financial Information on 15 December
2016.
The 2015 figures have been reclassified according to the provisions of the Circular above mentioned.
(in Euro)
ASSETS 2016 2015
10. Cash and cash equivalents 50,850,340 114,737,182
20. Financial assets held for trading 1,918,104,346 1,667,965,933
40. Financial assets available for sale 6,664,406 15,167,415
50. Financial assets held to maturity 558,955,610 614,818,290
60. Due from banks 643,229,012 644,089,443
70. Due from customers 29,152,785 86,233,851
100. Investment in subsidiaries 15,834,950 15,834,950
110. Tangible assets 3,095,565 2,981,724
120. Intangible assets 1,043,850 874,809
150. Other assets 41,958,806 41,556,606
Total Assets 3,268,889,670 3,204,260,203
LIABILITIES AND EQUITY 2016 2015
10. Due to banks 10,597,312
20. Due to customers 2,398,924,457 2,323,402,903
100. Legates 47,074,644 48,266,303
110. Other liabilities 18,709,825 20,086,868
120. Staff severance fund 6,992,585 6,788,489
130. Provision for risks and charges 124,588,179 124,838,475
(a) Provisions for pensions and similar obligations 121,088,179 108,338,475
(b) Other provisions 3,500,000 16,500,000
140. Valuation reserves (45,534,851) (27,981,254)
160. Reserves 382,134,172 382,134,172
(a) Unavailable reserves 100,000,000 100,000,000
(b) Available reserves 282,134,172 282,134,172
170. Capital 300,000,000 300,000,000
180. Net profit for the year 36,000,659 16,126,935
Total Liabilities and Equity 3,268,889,670 3,204,260,203
34
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Annual report 2016
INCOME STATEMENT
(in Euro)
INCOME STATEMENT 2016 2015
10. Interest and similar income 39,831,730 48,640,984
20. Interest and similar expense (3,168,836) (5,002,810)
30. Interest margin 36,662,894 43,638,174
40. Fee and commission income 15,836,850 17,709,979
50. Fee and commission expense (3,029,222) (2,481,584)
60. Net fee and commission income 12,807,628 15,228,394
70. Dividends and similar income 2,107,013 1,954,367
80. Net income for trading activities (8,982,924) (15,377,567)
100. Profit (loss) on disposal or repurchase of: 1,499,109
(b) Financial assets available for sale 1,499,109
120. Intermediation margin 44,093,720 45,443,368
130. Net losses/reversal on impairment: (1,331,864) 197,034
(a) Receivables (1,045,306) 352,909
(b) Financial assets available for sale (148,314)
(d) Other financial operations (138,244) (155,875)
140. Net income from financial operations 42,761,856 45,640,402
150. Administrative expenses: (19,085,562) (23,427,846)
(a) Staff expenses (10,244,959) (11,268,224)
(b) Professional services expenses (3,961,573) (7,607,374)
(c) Other administrative expenses (4,879,030) (4,552,248)
160. Net provisions to risks and charges 13,000,000 (16,500,000)
170. Net value adjustments to/recoveries on tangible assets (82,789) (63,868)
180. Net value adjustments to/recoveries on intangible assets (682,777) (511,793)
190. Other operating income (expense) 7,287 10,489,260
200. Operating costs (6,843,841) (30,014,247)
220. Net result of fair value valuation of tangible and intangible assets 82,644 500,780
250. Profit (loss) from current operations before taxes 36,000,659 16,126,935
270. Profit (loss) from current operations after taxes 36,000,659 16,126,935
290. Profit (loss) for the year 36,000,659 16,126,935
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Annual report 2016
35
STATEMENT OF COMPREHENSIVE INCOME
(in Euro)
2016 2015
10. Profit (loss) for the year 36,000,659 16,126,935
Items that will not be reclassified to Income Statement
40. Defined benefit plans (13,275,014) 8,880,551
Items that are or may be reclassified to Income Statement
100. Financial assets available for sale (4,278,583) 4,777,470
130. Total other income items (17,553,597) 13,658,021
Comprehensive income (item 10 + item 130) 18,447,062 29,784,956
STATEMENT OF CHANGES IN EQUITY
(in Euro)
2016 Allocation of Changes during the year
previous year profit
Total net equity Changes in Total net equity Reserves Dividends Changes Extra Comprehensive Net
at 31.12.2015 opening at 01.01.2016 and other in reserves dividend income Equity at
balances allocations distribution 2016 31.12.2016
Capital 300,000,000 300,000,000 300,000,000
Reserves
(a) unavailable 100,000,000 100,000,000 100,000,000
(b) available 282,134,172 282,134,172 282,134,172
(c) other
Valuation
reserves (27,981,254) (27,981,254) (17,553,597) (45,534,851)
Net profit
(loss) for
the year 16,126,935 16,126,935 (16,126,935) 36,000,659 36,000,659
Net Equity 670,279,853 670,279,853 (16,126,935) 18,447,061 672,599,980
(in Euro)
2015 Allocation of Changes during the year
previous year profit
Total net equity Changes in Total net equity Reserves Dividends Changes Extra Comprehensive Net
at 31.12.2014 opening at 01.01.2015 and other in reserves dividend income Equity at
balances allocations distribution 2015 31.12.2015
Capital 300,000,000 300,000,000 300,000,000
Reserves
(a) unavailable 100,000,000 100,000,000 100,000,000
(b) available 267,300,717 267,300,717 14,833,455 282,134,172
(c) other
Valuation
reserves (41,639,275) (41,639,275) 13,658,021 (27,981,254)
Net profit (loss)
for the year 69,333,455 69,333,455 (14,833,455) (54,500,000) 16,126,935 16,126,935
Net Equity 694,994,898 694,994,898 (54,500,000) 29,784,954 670,279,853
36
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Annual report 2016
CASH FLOW STATEMENT
(in Euro)
2016 2015
A. Operating activities
1. Management 42,833,712 48,037,261
Interest income 48,639,880 55,060,588
Interest expense (3,168,341) (7,659,915)
Dividends and similar income 2,107,013 1,954,367
Net commissions 12,807,628 15,228,394
Realised profit (loss) from trading activities 2,024,715 (6,521,066)
Staff expenses (10,566,173) (10,043,861)
Other administrative expenses (8,840,603) (13,323,635)
Other income (expense) (170,407) 13,342,389
2. Cash generated by/used in financial assets (206,618,819) 68,576,005
Financial assets held for trading (266,429,528) 41,765,424
Financial assets available for sale 5,575,219
Due from banks: on demand (192,197,353) 17,854,851
Due from banks: other receivables 192,249,112 (48,714,530)
Due from customers 54,408,236 61,305,128
Other assets (224,505) (3,634,868)
3. Cash generated by/used in financial liabilities 62,216,802 13,182,507
Due to banks: on demand (10,591,428) 10,581,312
Due to banks: other payables
Due from customers 75,515,176 12,469,195
Outstanding securities
Legates (1,191,659)
Financial liabilities held for trading
Financial liabilities carried at fair value
Other liabilities (1,515,287) (9,868,000)
Cash generated by/used in operating activities (101,568,305) 129,795,773
B. Investing activities
1. Cash generated by: 53,250,000 64,986,522
Disposals of investments in subsidiaries
Dividends received on investments in subsidiaries
Disposal/reimbursement of financial assets held to maturity 53,250,000 64,986,522
Disposals of tangible assets
Disposals of intangible assets
2. Cash used in: (965,804) (34,206,681)
Purchases of investments in subsidiaries
Purchases of financial assets held to maturity (33,412,000)
Purchases of tangible assets (113,986) (240,681)
Purchases of intangible assets (851,818) (554,000)
Cash generated by/used in investing activities 52,284,196 30,779,841
C. Financing activities
Issues/purchases of capital instrument
Dividend distribution and other purposes (16,126,935) (54,500,000)
Cash generated by/used in financing activities (16,126,935) (54,500,000)
Cash generated/used during the year (65,411,044) 106,075,614
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Annual report 2016
37
Items 2016 2015
Cash and cash equivalents at beginning of the period 114,737,182 16,351,306
Cash generated/used during the year (65,411,044) 106,075,614
Cash and cash equivalents: forex effect 1,524,202 (7,689,738)
Cash and cash equivalents at end of the period 50,850,340 114,737,182
EXPLANATORY NOTES
PART 1. ACCOUNTING POLICIES
1.1 GENERAL INFORMATION
1.1.1 Statement of compliance with accounting standards
The 2016 financial statement have been prepared in accordance with the Circular concerning the
annual financial statements and the consolidated financial statements of entities carrying out financial
activities on a professional basis, issued by Authority of Financial Information on 15 December
2016.
As stated in the Circular, the financial statements must be prepared in accordance with the “International
Accounting Standards – IAS”, the “International Financial Reporting Standards – IFRS”
and related Interpretations (“Interpretations SIC / IFRIC”), as adopted by the Vatican in a special
arrangement to the Monetary Convention between the European Union and the State of the Vatican
City on 17 December 2009.
The 2015 figures have been reclassified according to the provisions of the above mentioned Circular.
1.1.2 Accounting policies
The financial statements consist of the Balance Sheet, the Income Statement, the Statement of Comprehensive
Income, the Cash Flow Statement, the Statement of Changes in Equity and the Explanatory
Notes.
Disclosures under IFRS 7 “Financial Instruments, disclosures” about the nature and extent of risks
have been included in Part V “Information on Risks and Hedging Policies”.
The accounting principles and valuation methods applied in the preparation of these financial statements,
detailed below, are consistent with those of the previous financial year, except for new standards,
new interpretations, or amendments of standards and except for gold, silver, medals and precious
coins evaluation criteria. According to AIF Circular and IAS 2, starting from 1 January 2016,
gold, silver, medals and precious coins are measured at the lower of cost and net estimated recoverable
amount, as explained in the Section 1.1.4 “Other Aspects”.
The financial statements of the Institute are prepared in Euro, while the explanatory notes are expressed
in thousand Euro.
For the various items, the 2016 figures and corresponding values for the previous year are provided.
Where necessary, the comparative figures have been adjusted to conform to changes in presentations
in the current year.
The financial statements are prepared in Italian.
The financial statements of the IOR were prepared on a going concern basis in accordance with
IAS 1 “Presentation of Financial Statements”. As of the date of the approval of the financial statements,
there were no material uncertainties and therefore no significant doubt regarding the Institute’s
ability to continue as a going concern in the foreseeable future. 38
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Annual report 2016
The financial statements fairly present the financial position, financial performance and cash
flows of the Institute.
The preparation of the financial statements requires the Directorate to make certain estimates and
assumptions about the future where actual results may differ. Estimates and assumptions affect the
reported amounts of certain assets, liabilities, revenues and expenses in the financial statements. In
addition, changes in assumptions may have a significant impact on the financial statements in the
year in which the assumptions change.
The preparation of the financial statements also requires the Directorate to exercise judgements in
applying the IOR’s accounting policies to estimate the carrying value of assets and liabilities not
readily obtainable from other sources.
The Directorate believes that the underlying assumptions are appropriate and that the IOR’s financial
statements fairly present its financial positions and results. All estimates are based on historical
experience and/or expectations with regard to future events that seem reasonable on the basis
of information known at the time of the estimate. They are also reassessed on a regular basis and
the effects of any variation are immediately reflected in the financial statements.
Those areas involving a higher degree of judgement or complexity, or areas where assumptions and
estimates are significant to the financial statements, are disclosed in Section 1.1.4.1. “Critical accounting
estimates and judgements”.
The financial statements do not reflect a provision for taxes because there is no corporate income
tax in Vatican City State.
The Institute, given the immaterial value of its subsidiary, does not prepare consolidated financial
statements in accordance with the provisions of the Conceptual Framework (QC6 – QC11) of
IAS/IFRS, since the additional information coming from the consolidated financial statements
would be of little relevance for the users of the financial statements.
The Institute provides the additional information required by IFRS 12 “Disclosure of interests in
other entities” in Part 5, Section 5.2.6 “Disclosure of unconsolidated structured entities for accounting
purposes”.
The financial statements of the Institute are prepared by the Directorate and approved by the Board
of Superintendence, which will be submitted to the Commission of Cardinals.
The Commission of Cardinals acknowledges the financial statements and decides on the distribution
of profits, after taking into account the IOR’s own financing needs.
1.1.3 Subsequent events
According the provisions of IAS 10, all events that took place subsequent to 31 December 2016
have been evaluated in the preparation of the 2016 Financial Statements.
1.1.4 Other aspects
Starting from the financial year 2016 IOR applies the provisions arranged by the AIF Circular issued
on 15 December 2016 about gold, silver, medals and precious coins. The Circular provides
that gold, silver, medals and precious coins are normally carried at the lower of cost (see IAS 2, paragraphs
10-18) and net estimated recoverable amount (see IAS 2 paragraphs 6-7). 39
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Annual report 2016
According to IAS 8, the Institute considered the value as at 1 January 2015 (31 December 2014)
as cost of the gold, silver and precious medals and coins, because was not feasible to make a measurement
for the prior years.
As of 31 December 2015, the value of gold was lower than the cost and this involved only a reclassification
of the loss, already recorded in the previous financial year, from the item “Net income
for trading activities” to the item “Other operating income (expense)”; no other economic impacts
were recorded.
The gold, silver, medals and precious coins held by the Institute are classified in the Balance Sheet,
Item 150 Assets – “Other assets”. Gold is mainly deposited with the U.S. Federal Reserve, while
medals and precious coins are kept in the IOR vaults.
1.1.4.1 Critical accounting estimates and judgements
Critical judgements in applying the Institute accounting policies
In the process of applying the accounting policies adopted by IOR, which are described in Section
II, there may be circumstances that lead the Directorate to make judgements that have a significant
impact on the amounts recognized in the financial statements.
Such circumstances and related judgements may be part of the valuation process used for financial
instruments. The Directorate makes critical judgements when deciding the asset category for classification,
determining whether a market is active or not, whether the asset is liquid or illiquid, market
inputs and parameters to be used, when they must be reviewed, and assessing circumstances
where internal parameters are more reliable than market-based ones.
Retirement benefits and other post-employment liabilities are estimated trough an actuarial valuation
performed by an independent expert. Such an evaluation is based on critical judgements because
estimates are made about the likelihood of future events and the actual results could differ
from those estimates.
Estimates that contain elements of uncertainty
The process of applying the IOR’s accounting policies may require the use of key assumptions affecting
the future, and/or other sources of estimation uncertainty as of the balance sheet date, with
a significant risk of causing material adjustments to the carrying amount of assets and liabilities in
the next financial year.
Key assumptions and judgments made in the 2016 Financial Statements relate to the assessment
of illiquid debt securities portfolio held for trading and external investment funds included within
the portfolio held for trading, as disclosed in the section 1.4 “Fair value information”.
Illiquid securities are not quoted in active markets and their fair value is not readily available in the
market.These securities subject estimation uncertainties (Level 3 of fair value hierarchy) amounted
to EUR 23.3m as of 31 December 2016 (2015: EUR 35.9m). These were exclusively comprised
of externally managed investment funds.
With reference to the liabilities related to commitments linked to externally managed investment
funds, they are valued taking into account all available information at the date of preparation of
these financial statements. This assessment is made on the basis of assumptions and the process of
estimation in characterized by elements of uncertainty. By their nature, the estimates and assumptions
used may vary from one period to another and, therefore, it can not be excluded that in subsequent
periods the amounts of such liabilities may differ materially from those currently estimated
as a result of new information and charges in the evaluations made. 40
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Annual report 2016
The IOR has also been working to review and confirm its tax position and that of its clients in countries
where investment relationships exist. This review has identified probable contingencies that
relate to prior years as a result of different interpretations regarding the legal nature of the Institute
and the related applicable tax treatments.
As of 31 December 2016, based on the reviews performed and supported by external legal advisors,
the Institute has estimated a provision of EUR 3.5m, included in the Balance Sheet, item 130
“Provision for risks and charges” line b “Other provisions”. As this represents an estimate based on
critical assumptions, actual results may differ from what is expected when the future event takes
place.
1.1.5 Impact of New Accounting Pronouncements
Accounting standards, amendments and interpretations IFRS effective 1 January 2016
The following accounting standards, amendments and interpretations IFRS were adopted for the
first time by the IOR effective 1 January 2016:
• Amendments to IAS 19 “Defined Benefit Plans: Employee Contributions” (published on 21
November 2013): the amendments relate to the accounting treatment for contributions made
by employees or third parties to a defined benefit plan. The adoption of the amendments had
no impact on the disclosures or the amounts recognized in the Institute’s financial statements.
• Amendments to IFRS 11 “Accounting for acquisitions of interests in joint operations” (published
on 6 May 2014): the amendments provide guidance on how to account for the acquisition
of an interest in a joint operation whose activities constitute a business. The adoption of
the amendments had no impact on the disclosures or the amounts recognized in the Institute’s
financial statements.
• Amendments to IAS 16 and to IAS 38 “Clarification of acceptable methods of depreciation and
amortisation” (published on 12 May 2014):The amendments prohibit the use of revenue-based
depreciation; the revenue generated by an activity that includes the use of the asset to be depreciated
generally reflects factors other than just the consumption of economic benefits of the
asset, which is a requirement for depreciation. The adoption of the amendments had no impact
on the disclosures or the amounts recognized in the Institute’s financial statements.
• Amendment to IAS 1 “Disclosure Initiative” (published on 18 December 2014): the purpose
of the amendment is to provide clarification on disclosure items that may be perceived as presenting
impediments to a clear and intelligible preparation of financial statements. The adoption
of the amendments had no impact on the disclosures or the amounts recognized in the Institute’s
financial statements.
• Amendment to IAS 27 Equity Method in Separate Financial Statements (published on 12 August
2014): the amendment introduces the option to use the equity method in the separate financial
statements of an entity for the valuation of investments in subsidiaries, jointly controlled
entities and associated companies.The adoption of the amendments had no impact on the disclosures
or the amounts recognized in the Institute’s financial statements.
• Amendments to IFRS 10, IFRS 12 e IAS 28 “Investment Entities: Applying the Consolidation
Exception” (published on 18 December 2014): the amendments contain changes relating to
issues that arise from the application of the exception granted to the consolidation of investment
entities. The adoption of the amendments had no impact on the disclosures or the
amounts recognized in the Institute’s financial statements.
Finally, as part of the annual process for the improvement of the accounting standards, dated 12
December 2013 the IASB published the document “Annual Improvements to IFRSs: 2010-2012
Cycle” (including IFRS 2 Share Based Payments – Definition of vesting condition, IFRS 3 Business Com- 41
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Annual report 2016
bination – Accounting for contingent consideration, IFRS 8 Operating segments – Aggregation of operating
segments e Reconciliation of total of the reportable segments’ assets to the entity’s assets, IFRS 13
Fair Value Measurement – Short-term receivables and payables) and in 25 September 2014 the document
“Annual Improvements to IFRSs: 2012-2014 Cycle” (including IFRS 5 – Non-current Assets
Held for Sale and Discontinued Operations, IFRS 7 – Financial Instruments: Disclosure e IAS 19
– Employee Benefits) which partially integrate existing standards. The adoption of the annual improvements
had no impact on the disclosures or the amounts recognized in the Institute’s financial
statements.
Accounting standards, amendments and interpretations IFRS and IFRIC approved by the European
Union, not yet mandatorily applicable and not early adopted by the Institute at 31 December 2016
• Standard IFRS 15 – Revenue from Contracts with Customers (published on 28 May 2014 and
amended on 12th April 2016) will replace the following standards and interpretations: IAS 18
– Revenue IAS 11 – Construction Contracts, IFRIC 13 – Customer Loyalty Programmes, IFRIC
15 – Agreements for the Construction of Real Estate, IFRIC 18 – Transfers of Assets from CustomersSIC
31 – Revenues-Barter Transactions Involving Advertising Services. The standard establishes
a new revenue recognition model, which will apply to all contracts with customers except
those that fall within the scope of other IAS / IFRS standards as leasing, the insurance
contracts and financial instruments.This core principle is delivered in a five-step model framework:
• Identify the contract(s) with a customer;
• Identify the performance obligations in the contract;
• Determine the transaction price;
• Allocate the transaction price to the performance obligations in the contract;
• Recognize revenue when (or as) the entity satisfies a performance obligation.
The standard is effective for annual reporting periods beginning on or after 1 January 2018. Earlier
application is permitted. However, the amendments to IFRS 15, Clarifications to IFRS 15 – Revenue
from Contracts with Customers, published by the IASB on 12 April 2016, are not yet been endorsed
by the European Union. At this stage, the Institute is evaluating the possible impacts of these
changes on the financial statements.
• Final version of IFRS 9 – Financial Instruments (published on 24 July 2014). The document
recognized the results of IASB project to replace IAS 39:
• Introducing new criteria for the classification and measurement of financial assets and liabilities;
• With reference to the impairment model, the new standard requires that the estimate of credit
losses is carried out on the basis of the expected losses model (and not on the incurred losses
model used by IAS 39) using reasonable and supportable information about past events, current
conditions and reasonable and supportable forecasts of future economic conditions;
• Introducing a new hedge accounting model (types of transactions eligible for hedge accounting,
changes in the method of accounting for forward contracts and options when included
in a hedge relationship, changes in the effectiveness test).
The new standard is effective for financial statements beginning on 1 January 2018 or later.
The adoption of the IFRS 9 could have significant impacts on balance sheet income statement and
disclosure. At the same time, for the time being the Institute is not able to provide a reasonable estimation
of the above impacts without carrying out a thorough analysis.
Accounting standards, IFRS amendments and interpretations not yet endorsed by the European Union. 42
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At the date of these financial statements, the relevant European Union bodies have not yet completed
the approval process necessary for the adoption of amendments and the principles described
below.
• Standard IFRS 16 – Leases (published on 13 January 2016), will replace the following standards
and interpretations:
• IAS 17 – Leases,
• IFRIC 4 Determining whether an Arrangement contains a Lease,
• SIC-15 Operating Leases – Incentives,
• SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.
IFRS 16 establishes principles for the recognition, measurement, presentation and disclosure of
leases, with the objective of ensuring that lessees and lessors provide relevant information that faithfully
represents those transactions.This new standard brings most leases on-balance sheet for lessees
under a single model, eliminating the distinction between operating and finance leases. Lessor accounting
however remains largely unchanged and the distinction between operating and finance
leases is retained. The Institute do not expect a significant impact in the financial statements from
the application of this standard.
• Amendments to IAS 7 “Disclosure Initiative” (published on 29 January 2016).The document
aims to provide some clarification to improve disclosures about financial liabilities. In particular,
the amendments required to provide disclosures that enable users of financial statements
to evaluate changes in liabilities arising from financing activities. The amendments are effective
from 1 January 2017, earlier adoption is permitted. It is not required to present comparative
information relating to prior years.The Institute do not expect a significant impact in the
financial statements from the application of this amendment.
• Document “Applying IFRS 9 Financial Instruments with IFRS 4 Insurance Contracts” (published
on 12 September 2016). For entities whose predominant activity is issuing contracts
within the scope of IFRS 4, the document is intended to clarify the concerns arising from the
application of the new IFRS 9 to financial assets. The Institute do not expect a significant impact
in the financial statements from the application of this document.
• Document “Annual Improvements to IFRSs: 2014-2016 Cycle”, published on 8 December
2016, provides partial integration on existing standards, that include:
• IFRS 1 First-Time Adoption of International Financial Reporting Standards – Deletion of shortterm
exemptions for first-time adopters,
• IAS 28 Investments in Associates and Joint Ventures – Measuring investees at fair value through
profit or loss: an investment-by-investment choice or a consistent policy choice,
• IFRS 12 Disclosure of Interests in Other Entities – Clarification of the scope of the Standard.
The adoption of the above improvement would not affect significantly the Financial Statements.
• Interpretation IFRIC 22 “Foreign Currency Transactions and Advance Consideration” (published
on 8 December 2016). The interpretation clarifies the accounting for transactions that
include the receipt or payment of advance consideration in a foreign currency. This document
provides guidance on how an entity should determine the date of a transaction, and consequently,
the exchange rate to use in circumstances in which consideration is received or paid
in advance of the recognition of the related asset, expense or income. IFRIC 22 is effective from
1 January 2018. Earlier adoption is permitted.
The Institute considers that the application of the above interpretation would not affect significantly
the Financial Statements.
• Amendments to IAS 40 “Transfers of Investment Property” (published on 8 December 2016).
These amendments clarify the transfer of a property to, or from, investment property. In particular,
an entity shall reclassify a property to, or from, investment property only when there 43
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is evidence that there has been a change in use of the property. Such a change must be attributed
to a specific event; a change of management’s intentions for the use of a property by itself
does not constitute evidence of a change in use. The amendments are effective from 1 January
2018. Earlier adoption is permitted. The Institute considers that the application of the
above amendments would not affect significantly the Financial Statements.
• Amendments to IFRS 10 e IAS 28 “Sales or Contribution of Assets between an Investor and
its Associate or Joint Venture” (published on 11 September 2014). The amendments address a
conflict between the requirements of IAS 28 ‘Investments in Associates and Joint Ventures’ and
IFRS 10 ‘Consolidated Financial Statements’ and clarify that in a transaction involving an associate
or joint venture the extent of gain or loss recognition depends on whether the assets sold
or contributed constitute a business. At this stage, the IASB suspended the application of these
amendments.
1.2 INFORMATION ON THE MAIN FINANCIAL STATEMENT ITEMS
1.2.1 Financial assets held for trading
A financial asset is classified under this category if acquired principally for the purpose of trading.
Purchases of financial assets held for trading are initially recognized at the transaction date, which
is the date on which the IOR commits to purchasing the asset.
On initial recognition, financial assets held for trading are recognized at fair value, which generally
corresponds to the initial cash consideration paid, excluding direct transaction costs or revenues
directly attributable to the instrument.
Subsequent to initial recognition, the financial assets are measured at fair value, with any gains or
losses arising from the change in fair value recognized in the Income Statement.
Disposals are recognized on the trade date which is the date on which the Institute commits to dispose
the assets.
Gains and losses arising from disposal or redemption and unrealised gains and losses arising from
changes in the fair value are recognized in the Income Statement, item 80 “Net trading result”.
Interest income and expense arising from the financial assets held for trading are recognized in the
Income Statement on an accrual basis and recognized “pro rata” based on the contractual interest
rate. These are recognized in the Income Statement, item 10 “Interest and similar income”.
Dividends on financial assets held for trading are recognized in the Income Statement, item 70 “Dividend
income” when the entity’s right to receive payment is established.
For the fair value measurement please refer to Section 1.4, Fair value information.
All financial assets held for trading are derecognized when the rights to receive cash flows from the
financial assets have expired or when the IOR has substantially transferred all risks and rewards of
ownership.
1.2.2 Financial assets available for sale
Financial Assets classified as Available for sale are those intended to be held for an indefinite period
of time, and those that are subject to agreements that restrict the sale for a specified period. 44
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In addition, financial assets classified available for sale include non-derivative financial assets that
are not classified as held for trading or loans and receivables or held to maturity investments.
Financial assets available for sale are initially recognized on the trade date, which is the date on which
the IOR commits to purchasing the asset.
Financial assets available for sale are initially recognized at fair value plus any direct transaction costs.
Financial assets available for sale are subsequently measured at fair value, and any changes in the
fair value are recognized in Other Comprehensive Income and therefore directly in an equity reserve.
Disposals are recognized on the trade date which is the date on which the Institute commits to dispose
the assets.
At the time that the financial assets are derecognized or impaired, accumulated gain or loss from
changes in the fair value of financial assets available for sale previously recognized in Other Comprehensive
Income are reclassified and recognized in the Income Statement. When the financial assets
available for sale are sold, any unrealised gains or losses previously recognized in Other Comprehensive
Income, are reclassified into the Income Statement, item 100 “Profit (loss) on disposal
or repurchase” line b “Financial assets available for sale”. In case of impairment losses, gains or losses
previously recognized in Other Comprehensive Income are transferred to the Income Statement
item 130 “Net losses/reversal on impairment” line b “Financial assets available for sale”.
At each balance sheet date, the IOR assesses whether there is objective evidence of impairment on
financial asset available for sale. A significant or prolonged decline in the fair value of the financial
asset below its cost is considered as objective evidence of a reduction in value. If there is such evidence,
the cumulative loss, measured as the difference between the acquisition cost and the current
fair value, less previously recognized impairment loss, is transferred from equity and recognized in
the Income Statement in item 130 “Net losses/reversal on impairment” line b. If, in a subsequent
period, the amount of the impairment loss decreases, impairment losses recognized in the Income
Statement on equity instruments are not reversed through the Income Statement, but through the
Fair Value Reserves, a component of equity. For debt instruments classified as available for sale, if
the fair value increases in a subsequent period and the increase can be objectively related to an event
occurring after the impairment loss was recognized in profit or loss, the impairment loss is reversed
through the Income Statement.
The impairment policy adopted by IOR is that all equity securities classified as available for sale
must be impaired when their market prices are below their carrying prices and the price decline is
more than 20%, or when the decline to below the acquisition cost has persisted for more than 36
months.
Interest income and expense arising from the financial assets available for sale are recognized in the
Income Statement on an accrual basis and recognized “pro rata” based on the effective interest rate
method. These are recognized in the Income Statement, item 10 “Interest and similar income”.
Dividends on financial assets available for sale are recognized in the Income Statement, item 70 “Dividend
income” when the entity’s right to receive payment is established.
For the fair value measurement please refer to Section 1.4 “Fair value information”.
All financial assets available for sale are derecognized when the rights to receive cash flows from the
financial assets have expired or when the IOR has substantially transferred all risks and rewards of
ownership. 45
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1.2.3 Financial assets held to maturity
Financial assets held to maturity investments are quoted non-derivative financial assets with fixed
or determinable payments and with fixed maturities which the IOR has the intention and ability
to hold to maturity. If the IOR sells financial assets held to maturity, the entire category must be
reclassified as available for sale and for two subsequent years, no financial asset can be classified in
this category.
Financial assets held to maturity are initially recognized at the trade date, which is the date on which
the IOR commits to purchasing the asset, and are recognized at fair value plus any direct transaction
costs.
The financial assets held to maturity are subsequently measured at amortised cost using the effective
interest rate method, and adjusted to take into account the effects of any impairment losses,
when applicable the circumstances described below.
Gains and losses on financial assets held to maturity are recognized in the Income Statement through
the financial amortisation process (item 10 “Interest and similar income”) or when the assets are
derecognized (item 100 “Profit (loss) on disposal or repurchase” line c “Financial assets held to maturity”)
or when impairment losses are recognized in the Income Statement (item 130 “Net
losses/reversal on impairment” line c “Financial assets held to maturity”).
As of each balance sheet date, the IOR assesses whether there is objective evidence of impairment
on financial asset held to maturity. A financial asset is impaired and impairment losses are recognized
when one or more loss events occurred after the initial recognition of the asset and that
loss event has an impact on the estimated future cash flows of the financial asset. The amount of
the loss is measured as the difference between the asset’s carrying amount and the present value
of estimated future cash flows discounted at the financial asset’s original effective interest rate. The
carrying amount of the asset is directly reduced and the extent of the loss is recognized in the Income
Statement item 130 “Net losses/reversal on impairment” line c “Financial assets held to maturity”.
Interest income and expense arising from the financial assets held to maturity are recognized in the
Income Statement on an accrual basis and recognized “pro rata” based on the effective interest rate
method. These are recognized in the Income Statement, item 10 “Interest and similar income”.
The effective interest method is a method calculating amortized cost of an asset or a financial liability
and of allocating interest. The effective interest rate is the rate that makes the present value
of expected cash flows until maturity of the financial instrument (or, if more reliable for a shorter
period) exactly equal to the current book value. The calculation not only includes all fees and premiums
or discounts received or paid to the counterparty, which are an integral part of the effective
interest rate, but also the transaction costs and all other premiums or discounts.
All financial assets held to maturity are derecognised when the rights to receive cash flows from the
financial assets have expired or when the IOR has substantially transferred all risks and rewards of
ownership.
1.2.4 Credits
The item includes loans to customers and banks, with fixed or determinable payments, provided
directly, not quoted in an active market and not initially classified as financial assets held for trading,
available for sale or at fair value. 46
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The item includes:
1. authorized financing agreements where the Institute provides money directly to the customers
without the intention of subsequent re-negotiation;
2. Loans and Receivables debt securities offered through private placements, which the Institute
does not designate as financial assets at fair value through profit or loss or available for sale.
These financial assets are subject to the risk of deterioration of the creditworthiness of the counterparty.
Financing agreements are recognized when the amount is advanced to the borrower. They are initially
recognized at fair value, which is the value of the loan, plus any direct transaction costs. Financing
agreements are subsequently measured at amortised cost using the effective interest rate
method.
Securities are initially recognized on the trade date, which is the date on which IOR commits to
purchasing the asset at fair value plus any direct transaction costs or income. Securities are subsequently
measured at amortised cost using the effective interest rate method, and are subject to impaired
test and impairment losses are recognized when one or more loss events occurred after the
initial recognition of the asset and that loss event has an impact on the estimated future cash flows
of the financial asset.
When a loan becomes uncollectible, it is written off against the related provision for loan impairment.
Such exposures are written off after all the necessary procedures have been performed and
the extent of the loss has been determined. Subsequent recoveries of amounts previously written
off are recognized in the Income Statement item 130 “Net losses/reversal on impairment” line a “Receivables”.
Interest income and expense arising from loans and advances to customers are recognized in the Income
Statement on an accrual basis and recognized “pro rata” using the effective interest rate method.
These are recognized in the Income Statement, item 10 “Interest and similar income”.
At each balance sheet date, the IOR assesses whether there is objective evidence of impairment. A
financial asset is impaired and impairment losses are recognized when one or more loss events occurred
after the initial recognition of the asset and that loss event has an impact on the estimated
future cash flows of the financial asset.
The amount of the loss is measured as the difference between the asset’s carrying amount and the
present value of estimated future cash flows discounted at the financial asset’s original effective interest
rate. The carrying amount of the asset is reduced through the use of a provision account and
the extent of the loss is recognized in the Income Statement item 130 “Net losses/reversal on impairment”
line a “Receivables”.
Loans which are not individually impaired are subject to valuation on a portfolio basis based on
historical data.The loss is recognized in the Income Statement item 130 “Net losses/reversal on impairment”
line a “Receivables”.
If, in a subsequent period, the impairment loss decreases and the decrease can be objectively attributed
to an event occurring after the impairment was recognized (such as an improvement in the
debtor’s credit rating), the previously recognized impairment loss is reversed by adjusting the allowance
account.The amount of the reversal is recognized in the Income Statement, Statement item
130 “Net losses/reversal on impairment” line a “Receivables”. In any case, the reversal can not exceed
the cost that the financial instrument prior to the recognition of any impairment loss. 47
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Credits are derecognized when the rights to receive cash flows from the financial assets have expired
or when the IOR has substantially transferred all risks and rewards of ownership.
Regarding loans to customers, at the end of each month, the Advances Department analyses all exposures
and submits to the Directorate a proposal on how to manage aged loans at risk for noncollection.
Particularly, when the balance is deemed to be collectible within a short period, an impairment
loss is not realized, but the trend is monitored; when the balance is deemed to be
collectible in a mid/long term period, an impairment loss is recognized; when the positions are past
due and uncollectible, the department proposes a write-off the amount as a loss on loans to the Directorate.
It is to be mentioned that the Institute is not authorized by the Autorità di Informazione Finanziaria
to carry out the activity of “lending” (cfr. art. l (l) (b) of the Law n.XVIII and art. 3 (24) (b) of the
Regulation No. l), as credit activities on its own. However, it is authorized to make “advances” that
is to disburse funds to its clients and to a limited extent following guarantee of future income (such
as, for example, in the case of the advance of salary or pension paid by the Holy See or the Governatorato
of Vatican City) or guaranteed by financial assets of the same amount deposited by the
clients at the Institute.
1.2.5 Derivative financial instruments and hedge accounting
Derivatives are initially recognized at fair value on the date in which a derivative contract is entered
into.
The initial fair value generally corresponds to the initial cash consideration, and subsequently remeasured
at fair value with changes recognized through profit or loss.
The fair value of derivatives quoted in active markets is based on current bid prices. If the market
for a financial derivative is not active, the IOR obtains fair value from third parties or establishes
fair value by using valuation models that are primarily based on objective financial inputs, as well
as considering prices utilised in recent transactions and prices of similar financial instruments. All
derivatives are recognized as assets when the fair value is positive and as liabilities when fair value
is negative.
Derivative financial instruments may include embedded derivatives in a hybrid financial instrument.
IAS 39 requires that an embedded derivative be separated from its host contract and accounted for
as a derivative when:
1. The economic risks and characteristics of the embedded derivative are not closely related to
those of the host contract;
2. A separate instrument with the same terms as the embedded derivative would meet the definition
of a derivative;
3. The hybrid (combined) instrument is not measured at fair value with changes in fair value recognized
through Income Statement.
The Institute does not enter into Fair value hedges, Cash flow hedges or Net investment hedges for
foreign currency transactions/positions.
As of 31 December 2016 and 2015, the Institute did not hold derivatives.
48
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1.2.6 Investment in subsidiaries
Investment in subsidiariesconsists of the stake in the wholly-owned real estatecompany SGIR, based
in Rome, Via della Conciliazione. The principal assets of this company are real estate properties.
Investment in subsidiaries is carried at cost, less impairment.
Real estate owned by the subsidiary is depreciated on a straight-line basis over its estimated useful
life which management considers as between 30 and 50 years. Land is not depreciated.
1.2.7 Tangible assets
1.2.7.1 Tangible assets for investment – Investment properties
Investment properties are properties directly owned by the IOR. These are buildings not owneroccupied,
but inherited and held to generate rental income, capital appreciation or both.
Investment properties are initially measured at cost (which is zero in case of inheritances) and subsequently
at fair value with any change recognized in the Income Statement, item 220 “Net result
of fair value valuation of tangible and intangible assets”.
Improvements to buildings increase their carrying amounts.
1.2.7.2 Tangible assets for business activities – Equipment, furniture and vehicles
All equipment, furniture and vehicles are stated at historical cost, minus accumulated depreciation.
Historical cost is generally based on the fair value of the sum paid in exchange for assets and includes
expenditure that is directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount or are recognized as a separate asset,
as appropriate, only when it is probable that the IOR will recognise future economic benefits associated
with the item.
All repairs and maintenance costs are charged to the Income Statement in the year they are incurred.
Equipment, furniture and vehicles are amortised on a straight-line basis over their expected useful
lives (four years).
The asset’s residual values and useful lives are reviewed, and adjusted if appropriate, on each balance
sheet date. These assets are reviewed for impairment whenever events or changes in circumstances
indicate that the carrying amount may not be recoverable. An asset’s carrying amount is written
down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount.The recoverable amount is the higher of the asset’s fair value less costs
to sell and its value in use.
The result of the impairment test and the depreciations are recognized in the Income Statement
item 170 “Net value adjustments to/recoveries on tangible assets”.
Gains and losses on disposals are determined as the difference between the sale proceeds and the
carrying amount of the assets.They are recognized in the Income Statement, under item 190 “Other
operating income (expense)”.
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1.2.8 Intangible assets
Intangible assets correspond to computer software licenses and to expenses related to their implementation.
Acquired computer software licenses are recognized at acquisition costs, including costs
incurred to bring the specific software into use. These costs are amortised on a straight-line basis
over their expected useful lives (four years).
These assets are reviewed for impairment whenever events or changes in circumstances indicate that
the carrying amount may not be recoverable. An asset’s carrying amount is written down immediately
to its recoverable amount if the asset’s carrying amount is greater than its estimated recoverable
amount. The recoverable amount is the higher of the asset’s fair value less costs to sell it and
its value in use.
The result of the impairment test and the depreciations are recognized in the Income Statement
item 180 “Net value adjustments to/recoveries on intangible assets”.
Costs associated with maintenance of computer software programmes are recognized as an expense
in the Income Statement when they are incurred.
1.2.9 Due to banks and to customers
Due to banks comprises interim current accounts overdrafts, as the Institute does not carry out funding
activites on the interbank market.
Due to customers are composed by financial instruments (different from trading liabilities) that assumed
the typical forms of funds, realised by IOR with customers.
The mentioned financial liabilities are recorded in the financial statements on the settlement date.
They are initially recognized at the current value, which normally corresponds to the amount collected.The
initial recognition value includes possible expenses and incomes from anticipated transaction
and directly attributable to each liability; not included in the initial carrying amount are all
charges which are paid back by the credit counterparty or that are attributable to internal administrative
expenses.
After the initial recognition, due to banks and to customers are measured at amortized cost using
the effective interest rate method.The short-term liabilities remain recorded at the amount received.
Interest expense related to due to banks and to customers are recognized in the income statement,
item 20 “Interest and similar expense”.
Due to banks and to customers are derecognized when they expired or extinguished.
1.2.10 Legates
According to the Canon Law (Can. 1303), the term “Legati – non autonomous pious foundation”
comprises: “temporal goods given in any way to a public juridical person and carrying with them
a long-term obligation, such a period to be determined by particular law. The obligation is for the
juridical person, from the annual income, to celebrate Masses, or to perform other determined ecclesiastical
functions, or in some other way to fulfil the purposes mentioned in Can. 114, par. 2”.
Based on such definition, this is understood to be an arrangement whereby capital is donated or
willed to the IOR for religious or charitable purposes, based on the understanding that the transferred
capital is invested on a long term basis and the annual income earned from the investment 50
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is devoted to the fulfilment of the purpose prescribed by the donor. Under these provisions, the IOR
will administer the capital in accordance with the purpose prescribed by the donor (e.g., for Holy
Mass Intention or scholarships).
Legates are recognised in the financial statement on the settlement date. Legates are initially recognised
at the current value, which normally corresponds to the amount received. The initial recognition
value includes also expenses and incomes for anticipated transaction and directly attributable
to each liability; not included in the initial carrying value are all charges which are paid back
by the credit counterparty or that are attributable to internal administrative expenses.
The interest expense related to the Legates are recognized in the income statement, item 20 “Interest
and similar expense”.
Legates are derecognised when they expired or extinguished.
1.2.11 Staff severance fund
Staff severance fund is a post-employment benefit that correspond to indemnities paid to personnel
when they leave the IOR. The amount due is based on years of service and salary paid in the
last year of employment.These benefits are financed by contributions from employees and the IOR.
The liability is measured with utilizing certain actuarial assumptions, as the present value of the estimated
future cash outflows according to the projected unit credit method required by IAS 19. Remeasurements
arising from the defined benefit plan comprise actuarial gains and losses, recognized
in Other Comprehensive Income. All other expenses related to the defined benefit plan in the Income
Statement, item 150 “Administrative Expenses”, line a “Staff expenses”.
1.2.12 Provisions for risks and charges – Pension fund and similar obligations
For the pensions of its employees, the IOR operates a defined benefit plan, which is financed by
contributions from employees and the IOR.
The IOR’s net liabilities related to the defined benefit plan for pensions is calculated by estimating
the amount of future benefit that employees will earn in return for their service in the current
and prior periods; that benefit is discounted to determine its present value.
The IOR determines the interest expense on the defined benefit liability for the year by applying
the discount rate used to measure the same liability at the beginning of the year.
The discount rate is the yield on the reporting date from high quality corporate bonds that have
maturity dates approximating the terms of the IOR’s liabilities and that are denominated in the currency
in which the benefits are expected to be paid.
The calculation is performed annually by a qualified actuary, who assesses the fairness of the liability,
using the projected unit credit method. Remeasurements arising from the defined benefit plan
comprise actuarial gains and losses. The IOR recognizes them immediately in Other Comprehensive
Income and all other expenses related to the defined benefit plan in the Income Statement, item
150 “Administrative expenses”, line a “Staff expenses”.
When the benefits of the plan are changed, the portion of the changed benefit related to past service
by employees is recognized immediately in the Income Statement.
On 1 January 2005, all IOR personnel also joined the general Vatican City State pension plan.This
system is financed by contributions made by the Institute and employees. Contributions to the Vat- 51
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ican plan made by the IOR are recognized in the Income Statement, item 150 “Administrative expenses”,
line a “Staff expenses” when they occur.
Consequently, the IOR’s defined benefit plan for pensions covers the entire amount to be paid by
the Institute to employees for their service up to 31 December 2004. For the employees’ services
from 1 January 2005, the obligation is limited to the part not covered by the Vatican City State
Pension Plan taking into account the difference in the retirement age of the two pension systems.
1.2.13 Foreign Currency Transactions
Functional and presentation currency
The functional currency is the currency in which the items included in the financial statements must
be measured. According to IAS 21 “The effects of changes in foreign exchange rates” the functional
currency is the currency of the primary economic environment in which the entity operates. This
is the currency that determines the pricing of transactions, but it is not necessarily the currency in
which transactions are denominated.
The reporting currency is the currency in which the financial statements are prepared. IAS 21 allows
an entity to prepare its financial statements in any currency.
The IOR’s functional and presentational currency is the Euro, which is the currency of the primary
economic environment in which the Institute operates.
Transactions and balances
Foreign currency transactions, if they impact profit or loss accounts, are converted into the functional
currency using the exchange rates applicable at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies are converted into the functional
currency using the spot exchange rate at the reporting date (closing rate).
Non-monetary assets and liabilities denominated in foreign currencies are translated using the rate
at the date their amount (cost or fair value) was determined.
Non-monetary items carried at cost are converted at the exchange rate at the date of initial recognition
in the financial statements.
Non-monetary items carried at fair value are translated using the rate at the date of the determination
of their fair value.
Foreign exchange gains and losses resulting from the settlement of foreign currency transactions and
from the conversion at year-end exchange rates of monetary assets and liabilities denominated in
foreign currencies are recognized in the Income Statement, item 80 “Net income for trading activities”.
Foreign exchange gains and losses resulting from the conversion at year-end exchange rates of nonmonetary
assets and liabilities are:
• recognized in the Income Statement as part of the fair value gain or loss if the non-monetary
assets and liabilities are carried at fair value through profit and loss;
• included in the fair value reserves in the equity if the non-monetary assets and liabilities are car- 52 ried at fair value in the equity.
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1.2.14 Offsetting financial instruments
Financial assets and liabilities are offset and the net amount is reported on the Balance Sheet only
when there is a legally enforceable right to offset the recognized amounts and there is an intention
to settle on a net basis. Otherwise, the financial assets and liabilities are separately reported on the
balance sheet.
1.3 TRANSFERS BETWEEN PORTFOLIOS
The amendments to IAS 39 and to IFRS 7 “Reclassification of financial assets” allow for the reclassification
of certain financial assets after their initial recognition, out of the held for trading
(HFT) and available for sale (AFS) portfolios.
In particular, those HFT or AFS financial assets that would have met the definition specified by
international accounting standards for the loan portfolio (if such assets were not classified as HFT
or AFS respectively on initial recognition) may be reclassified if the entity intends, and is able, to
hold them for the foreseeable future or until maturity.
The Institute did not have any transfers between portfolios in 2016 and in previous years.
1.4 FAIR VALUE INFORMATION
1.4.1 Qualitative fair value information
For the measurement of fair value, the amendments to IFRS 7 and subsequent changes introduced
by IFRS 13 defines a fair value hierarchy based on level of observable inputs, valuation techniques
adopted and parameters used for measurement. The financial assets are classified according to the
following hierarchy that consists of three levels.
Level 1
In Level 1, the fair value is measured using the quoted prices in active markets for the financial assets
and liabilities to be evaluated.
A financial instrument is considered quoted in an active market when its price is:
• readily and regularly available on stock exchanges, from information providers or intermediaries;
• significant, meaning that it represents effective market transactions regularly occurring in normal
transactions.
To be considered Level 1, the price should be not be adjusted through an adjustment factors (valuation
adjustment). If it is adjusted, the measurement at fair value of financial instrument will be
Level 2 or Level 3.
Level 2
A financial instrument is included in Level 2 when the inputs utilised to measure fair value are directly
or indirectly observable in the market.
The parameters of Level 2 are as follows:
• prices quoted on active markets for similar assets or liabilities;
• price quoted on non-active markets for similar or identical assets and liabilities; 53
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Annual report 2016
• market observable inputs other than the quoted price for the asset or liability (interest rates,
yield curve, credit spreads, volatility);
• parameters that derive mainly (or are corroborated by correlation or other techniques) from observable
market data (market-corroborated inputs).
An input is observable when it reflects the assumptions that market participants would use in pricing
an asset or liability based on market data provided by sources independent of the reporting entity.
Valuation techniques used to determine fair value that should be used when the market price is not
available or is not significant, must meet three conditions. They must:
1. be methodologically consolidated and widely accepted;
2. utilise market inputs disclosed above;
3. be periodically reviewed.
Valuation techniques used for fair value measurement should be periodically assessed using inputs
observable in the markets to ensure that outputs reflect actual data and comparative market prices
and to identify any weaknesses.
If the fair value measurement utilise observable inputs that require a significant adjustment based
on unobservable inputs, the financial instrument should be considered in Level 3.
Level 3
Included in Level 3 are financial instruments valued using inputs unobservable market data (unobservable
inputs). To be included in Level 3, at least one of the inputs must be unobservable on
the market.
Level 3 financial instruments are valued using inputs are not derived from independent sources but
on the reporting entity’s own assumptions based on assumptions that market participants would
use, based on observable inputs.
IFRS 13 specifies a hierarchy of fair value measurements based on whether the inputs are observable
or unobservable. Observable inputs reflect the assumptions that market participants would use
in pricing the asset or liability based on market data obtained from sources independent of the reporting
entity. The market price is the most observable and objective input (Level 1). Where no
active markets exists or where quoted prices are not available, the entity determines the fair values
by using valuation techniques. Valuation techniques can utilise inputs observable on the market
(Level 2) or non-observable inputs (Level 3).
The above mentioned valuation approaches should be applied in a hierarchical order.
When there is availability of quoted market prices in active markets, an entity must measure fair
value using Level 1 inputs. Furthermore, the valuation techniques used should prioritise the utilization
of inputs observable on the market and should rely as little as possible on the reporting entity’s
own data, internal valuations or unobservable inputs.
Fair value level 2 and 3: valuation techniques and input used
The criteria used by the IOR to determine the fair value of financial instruments are as follows.
The fair values of investments held by the IOR quoted in active markets are usually based on current
bid prices.
A financial instrument is considered as quoted in active markets if the prices are readily and regu- 54
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Annual report 2016
larly available in an exchange or regulatory agency and those prices represent actual market transactions
that occur regularly on an arm’s length basis.
In the absence of an active market, or in the event the market at the time of the valuation is not
considered active, for example, in case of illiquid markets, the valuation techniques adopted by IOR
are based on the use of recent arm’s length transactions in the market, even on a non-active market,
relative to identical financial instrument or financial instruments with similar characteristics.
The valuation techniques include the discounted cash flow analysis and other valuation techniques
commonly used by market participants.
If recent transactions of the same or similar instruments are not available, the IOR uses valuation
techniques based on market parameters or other parameters.
When using valuation techniques, the IOR tries to use observable market data, reducing its reliance
on internal data.
Valuation techniques are periodically reviewed for applicability, assessing the quantity and the quality
of information available as of the balance sheet date, in order to correctly reflect any changes in
the market. For the same reason, adjustments to market inputs, utilised in a certain model, can
change from time to time.
Consequently IOR models ensure that outputs reflect actual data and comparative market prices.
In Level 1, the IOR has classified all financial instruments quoted in active markets.
Under Level 2, the IOR has classified all illiquid financial instruments, include those that are structured
or unstructured, as well as listed external investment funds that are not immediately payable
and unlisted investment funds with investments in listed instruments. The basis for the valuation
of illiquid securities follow prices provided by the securities issuer. These prices are internally verified
and tested utilising internal models and observable market parameters and, in case of discrepancies,
adjusted considering the result of the above-mentioned analysis. They are also adjusted on
the basis of valuations from independent sources.
Under Level 3, the IOR has classified equity securities that are not quoted or other financial instruments
for which fair values are determined using a model based on internal parameters.
To the extent that this is practical, the models use only observable data. However, areas such as default
rates, volatilities and correlations require the Directorate to make estimates.
In this category the Institute has also classified other assets:
• for which the IOR did not receive independent valuations;
• for which the IOR does not have access to financial information;
• for which, despite having financial information, the Institute believes that the valuation of underlying
assets, due to the nature of the investment, is based on valuation parameters that are
not immediately observable in the market;
• for which the IOR has received independent expert valuations (i.e. for investment properties).
The NAV of funds, defined as the difference between the current value of the assets and liabilities
of the fund, a Fair Value Adjustment was calculated to include other risk factors.
The Fair Value Adjustment (FVA) is defined as the amount to be added to the mid-price observed
in markets, rather than the price determined by the model, with the aim of obtaining the fair value
of the position. The FVA includes the uncertainty inherent in the valuation of a financial instrument
with the goal of reducing the risk of incorrect valuations in the financial statements and en- 55
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Annual report 2016
suring that fair value reflects the realised price of a market transaction that is actually possible; and
incorporating possible future costs.
The Institute adjusts the value of financial instruments measured at fair value on a recurring basis
classified as Level 2 and Level 3 based on credit risk (Credit Valuation Adjustment), liquidity risk
related to the disinvestment, close-out costs and available informations about the outstanding assets.
With regard to the Credit Valuation Adjustment, the Institute considered the impact of fair value
on credit risk of the counterparty and the country using the following inputs:
• PD (Probability of Default) linked to the rating of counterparty (if not available the PD corresponding
to an investment with an S&P rating of BBB was used);
• LGD (Loss Given Default) based on the estimated level of expected recovery in case of counterparty
default and defined through market benchmark and based on experience.The percentage
used was 60%.
Regarding the close-out cost, an adjustment is applied on the NAV of external investment funds
if close-out penalties are stipulated.
Sensitivity Analysis
For fair value measurements where significant unobservable inputs are used (level 3), a sensitivity
analysis is performed in order to obtain the range of reasonable alternative valuations. The Institute
takes into account that the impact of unobservable inputs on the measurement of fair value
of Level 3 depends on the correlation between the different inputs used in the valuation process.
A sensitivity analysis was performed using a stress test on the PD and LGD by +/-5% and it did
not have a significant impact to the value of the investments classified as Level 3.
Fair value hierarchy (transfers between portfolios)
With reference to financial assets and liabilities measured at fair value on a recurring basis, transfers
between the fair value hierarchy were based on the following guidelines.
For debt securities, transfers from level 3 to level 2 occurs when the relevant parameters used as inputs
to the valuation technique are observable on the market. Transfers from level 3 to level 1 occurs
when the presence of an active market has been verified, as defined by IFRS 13.Transfers from
level 2 to level 3 occurs when some of the relevant parameters for determination of fair value are
no longer directly observable on the market.
For equity instruments classified as available- for- sale, transfers between the fair value hierarchy occurs:
• during the period, when market observable inputs become available (e.g. prices are determined
in comparable transactions on the same instrument between independent and knowledgeable
counterparties), the Institute proceeds with the reclassification from level 3 to level 2;
• when inputs that are directly or indirectly observable in the market used as the basis for the valuation
no longer exist, or no longer updated (e.g. No recent comparable transactions or market
multiples are no longer applicable) and no other inputs are available, the Institute uses valuation
techniques that use unobservable inputs.
Information on assets measured at fair value on a recurring basis
We provide below the IFRS 13 disclosure requirements about assets measured at fair value on a recurring
basis. By definition, the carrying value of these items corresponds to the fair value. 56
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Fair value is defined as the price that would be received in selling an asset or paid when transferring
a liability in an ordinary transaction between market participants at the measurement date (i.e.
an exit price).
Financial assets held for trading
These consist of:
• Debt securities: the Institute has investments in debt securities valued at market price (markto-market)
and regularly traded in active, liquid markets. Consequently, these instruments are
classified as Level 1 in the fair value hierarchy, except for some bonds whose prices are determined
internally on the basis of similar instruments quoted on active markets and are classified
as Level 2; these amounted to EUR 81.5m.
• Equity securities: the Institute has investments in equity securities valued at market price (markto-market)
and regularly traded in active, liquid markets. Consequently, these instruments classified
as Level 1 in the fair value hierarchy.
• Investments funds: the Institute has external investment funds amounting to EUR 33.7m. With
the exception of a fund of EUR 10.4m as Level 2 (liquid with monthly NAV), investment funds
are classified as Level 3. Consequently, at 31 December 2016, a total of EUR 10.4m was classified
as Level 2, while the remaining amount for EUR 23.3m was Level 3.
Financial assets available for sale
These are mainly classified as Level 1, comprise of shares quoted in active, liquid markets, except
for two unlisted equity securities, one classified as Level 2 and the other classified as Level 3.
Tangible assets for investment
This item is comprised of properties directly owned by the Institute.
The fair value of the properties is assessed by a qualified, independent expert.
The appraisal is based on the real estate market data collected through surveys carried out by major
industry players. The parameters used also reflect expert assumptions based on available information.
For these reasons, the investment properties are classified as Level 3 on the fair value hierarchy.
Assets not measured at fair value on a recurring basis
For assets and liabilities not measured at fair value on a recurring basis, the following is the information
is required by IFRS 13.
Financial assets held to maturity
The fair value of financial assets held to maturity securities corresponds to the market value at the
balance sheet date. The securities are classified as Level 1 in the fair value hierarchy since they are
regularly traded on active, liquid markets.
Due from banks
This item is comprised of deposits on demand and time deposits with banks in addition to financial
“Loans and Receivables” securities issued by banks.
Assuming that time deposits do not exceed ninety days, the carrying value of bank deposits, at the
balance sheet date, approximates fair value and they are recorded in Level 1 of the fair value hierarchy.
For “Loans and Receivables” securities, the fair value represents the market value at the closing date
of the financial statements. 57
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By definition, “Loans and Receivables” securities are not quoted in active, liquid markets, but the
valuation is sent weekly by the counterparty and is verified through an internal model.
For these reasons, “Loans and Receivables” securities are classified in Level 2 of the fair value hierarchy.
Due from customers
This item is comprised of receivables due from credits granted as advances to clients in addition to
“Loans and receivables” securities issued from entities other than banks.
For Doubtful loans considered to be non-collectible, the Institute proceeded in the calculation of
a specific impairment loss, and the carrying value represents fair value.
With regards to other receivables, the fair value was calculated as follows:
• Loans and credit lines: calculated by discounting future cash flows using a discount rate representative
rate for the Institute;
• Overdrafts: given their nature, the value of overdrafts approximates fair value.
For “Loans and Receivables” securities the fair value represents the market value at the closing date
of the financial statements.
By their nature, “Loans and Receivables” securities are not quoted in active, liquid markets, but the
valuation is sent weekly by the counterparty and is controlled through an internal model.
For these reasons, “Loans and Receivables” securities are classified in Level 2 of the fair value hierarchy.
Liabilities not measured at fair value on a recurring basis
Due to banks
The carrying value of this item approximates fair value, considering their short maturity.
Due to customers
This item is comprised of client deposits on demand and time deposits, liquid accounts and term
deposits related to Asset Management positions. Their carrying value approximates fair value, considering
the short maturity.
As the fair value calculation is based on parameters not observable on markets, not even indirectly,
these are classified as Level 3 in the fair value hierarchy.
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1.4.2 Quantitative fair value information
1.4.2.1 Fair value hierarchy
(a) Assets and liabilities measured at fair value on a recurring basis: detail by fair value level
2016 2015
L1 L2 L3 L1 L2 L3
1. Financial assets held for trading 1,802,904 91,923 23,277 1,499,512 132,512 35,942
2. Financial assets carried
at fair value
3. Financial assets available for sale 6,157 499 8 13,348 1,811 8
4. Hedging derivatives
5. Tangible assets 2,980 2,897
6. Intangible assets
Total 1,809,061 92,422 26,265 1,512,860 134,323 38,847
1. Financial liabilities held
for trading
2. Financial liabilities carried
at fair value
3. Hedging derivatives
Total
Key: L1 = Level 1 L2 = Level 2 L3 = Level 3
(b) Annual changes of assets measured at fair value on a recurring basis (Level 3)
The following table provides information about the assets measured at fair value on a recurring basis
and categorized as Level 3 in the fair value hierarchy at the beginning of the year, disposals and/or
additions during the year, and their final values at the balance sheet date.
Financial assets Financial assets Tangible
held for available assets
trading for sale
1. Opening balance 35,942 8 2,897
2. Additions
2.1 Purchases
2.2 Profit recognized in:
2.2.1 Income Statement 1,693 136
– of which Gains 1,693 136
2.2.2 Net Equity
2.3 Transfers from other levels
2.4 Other variations in addition
3. Disposals
3.1 Sales
3.2 Reimbursement
3.3 Losses recognized in:
3.3.1 Income Statement (14,358) (53)
– of which Losses (14,358) (53)
3.3.2 Net Equity
3.4 Transfers to other levels
3.5 Other variations in reduction
4. Closing balance 23,277 8 2,980
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(c) Annual changes of liabilities measured at fair value on a recurring basis (Level 3)
The Institute did not hold liabilities measured at fair value on a recurring basis.
d) Assets and liabilities not measured at fair value or measured at fair value on a non-recurring basis:
detail by fair value level
2016 2015
BV L1 L2 L3 BV L1 L2 L3
1. Financial assets
held
to maturity 558,956 583,392 614,818 650,020
2. Due from banks 643,229 643,229 644,089 618,660 25,330
3. Due from
customers 29,153 30,418 86,234 62,116 25,374
Total 1,231,338 1,226,621 30,418 1,345,141 1,268,680 87,446 25,374
1. Due to banks 10,597 10,597
2. Due to
customers 2,398,924 2,398,924 2,323,403 2,323,403
Total 2,398,924 2,398,924 2,334,000 10,597 2,323,403
Key: BV = Book Value L1 = Level 1 L2 = Level 2 L3 = Level 3
1.5 INFORMATION ON “DAY ONE PROFIT/LOSS”
The Institute did not earn day one profit/loss from financial instruments pursuant to paragraph 28
of IFRS 7 and other related IAS/IFRS paragraphs.
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PART 2. INFORMATION ON THE BALANCE SHEET
ASSETS
ITEM 10 – CASH AND CASH EQUIVALENTS
Detail
2016 2015
(a) Cash 15,216 16,213
(b) Free deposits ex art. 9 (b) 35,634 98,524
(c) Free deposits ex art. 9 (c)
(d) Other free deposits
Total 50,850 114,737
The balance included in (b) represent free deposits with Public Authorities of the Holy See and Vatican
City State with the statutory purpose of administering the assets owned by the Holy See (at
present APSA).
ITEM 20 ASSETS – FINANCIAL ASSETS HELD FOR TRADING
2.1 Detail by asset type
2016 2015
L1 L2 L3 L1 L2 L3
A. Cash assets
1. Debt securities
1.1 Structured securities
1.2 Other debt securities 1,750,174 81,519 1,436,403 127,125
2. Equity securities 52,730 63,109
3. UCI units 10,404 23,277 5,387 35,942
4. Loans
4.1 Outstanding repos
4.2 Other
Total A 1,802,904 91,923 23,277 1,499,512 132,512 35,942
B. Derivatives
1. Financial derivatives
1.1 Held for trading
1.2 Related to the
fair value option
1.3 Other
2. Credit derivatives
2.1 Held for trading
2.2 Related to the
fair value option
2.3 Other
Total B
Total (A+B) 1,802,904 91,923 23,277 1,499,512 132,512 35,942
The table shows all financial assets, by type, allocated to the trading portfolio and classified in the
fair value hierarchy (L1, L2 or L3) according to their nature.
Financial assets held for trading is primarily comprised of debt securities classified as level 1 in the 61
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fair value hierarchy; the only financial assets classified as level 3 are shares of UCI units.
As of 31 December 2016, similar to the prior year, the Institute did not have any derivative financial
instruments in the trading portfolio.
2.2 Detail by borrowers/issuers
2016 2015
A. Cash assets
1. Debt securities
(a) Public entities 912,466 546,426
(b) Financial companies 703,239 705,268
(c) Insurance companies 9,286 21,217
(d) Non financial companies 206,702 290,617
(e) Other subjects
2. Equity securities
(a) Banks
(b) Other issuers:
– insurance companies 2,759 1,074
– financial companies 36,529 57,654
– non financial companies 13,442 4,381
– other
3. UCI units 33,681 41,329
4. Loans
(a) Public entities
(b) Financial companies
(c) Insurance companies
(d) Non financial companies
(e) Other subjects
Total A 1,918,104 1,667,966
B. Derivatives
(a) Banks
(b) Customers
Total B
Total (A+B) 1,918,104 1,667,966
UCI units in the financial assets held for trading refers exclusively to investment funds managed
by third parties composed by equity securities. Regarding the composition of the funds, refer to the
table included in section 5.2.6 “Information on unconsolidated structured entities” of Part 5 “Information
on risks and hedging policies”.
No borrowers/issuers are residents of the Vatican City State.
Line (a) Public entities of the item A.1 Debt securities is exclusively comprised of securities issued
by Foreign Central Public Administrations.
In the portfolio of financial assets held for trading there are no equity securities classified as in default
or at the risk of default.
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ITEM 40 ASSETS – FINANCIAL ASSETS AVAILABLE FOR SALE
4.1 Detail by asset type
2016 2015
L1 L2 L3 L1 L2 L3
1. Debt securities
1.1 Structured securities
1.2 Other debt securities
2. Equity securities
2.1 Carried at fair value 6,157 499 13,348 1,811
2.2 Carried at cost 8 8
3. UCI units
4. Loans
Total 6,157 499 8 13,348 1,811 8
4.2 Detail by borrowers/issuers
2016 2015
A. Cash assets
1. Debt securities
(a) Public entities
(b) Financial companies
(c) Insurance companies
(d) Non financial companies
(e) Other subjects
2. Equity securities
(a) Banks
(b) Other issuers:
– insurance companies 6,157 13,348
– financial companies
– non financial companies 507 1,819
– other
3. UCI units
4. Loans
(a) Public entities
(b) Financial companies
(c) Insurance companies
(d) Non financial companies
(e) Other subjects
Total A 6,664 15,167
No borrowers/issuers are resident in the Vatican City State.
In the portfolio of financial assets available for sale, there are no equity securities classified in default
or at the risk of default.
4.3 Financial assets available for sale with specific hedges
The Institute did not hold financial assets available for sale with specific hedges.
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ITEM 50 ASSETS – FINANCIAL ASSETS HELD TO MATURITY
5.1 Detail by asset type
2016 2015
FV FV
BV
L1 L2 L3
BV
L1 L2 L3
1. Debt securities
– structured
– other 558,956 583,392 614,818 650,020
2. Loans
Total 558,956 583,392 614,818 650,020
Key: BV = book value, FV = fair value
Financial assets held to maturity is mainly comprised of government bonds issued by European countries
and bonds issued by international financial entities.
As of 31 December 2016, securities with maturity less than 1 year (31 December 2017) had a balance
sheet value amounting to EUR 316.4m.
5.2 Detail by borrowers/issuers
2016 2015
1. Debt securities
(a) Public entities 441,580 518,262
(b) Financial companies 88,033 66,998
(c) Insurance companies
(d) Non financial companies 29,343 29,558
(e) Other subjects
2. Loans
(a) Public entities
(b) Financial companies
(c) Insurance companies
(d) Non financial companies
(e) Other subjects
Total 558,956 614,818
No borrowers/issuers are residents of the Vatican City State.
Line (a) Public entities of the item A.1 Debt securities is exclusively comprised of securities issued
by Foreign Central Public Administrations.
5.3 Financial assets held to maturity with specific hedges
The Institute did not hold financial assets held to maturity with specific hedges.
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ITEM 60 ASSETS – DUE FROM BANKS
6.1 Detail by type
2016 2015
FV FV
BV
L1 L2 L3
BV
L1 L2 L3
A. Credits ex art. 14 (c)
1. Fixed-term deposits 77,104 77,104 60,707 60,707
2. Outstanding repos
3. Others
B. Credits ex art. 14 (d)
1. Fixedterm deposits
2. Outstanding repos
3. Others
C. Due from banks
1. Loans
1.1 Current accounts
and demand
deposits 457,624 457,624 265,426 265,426
1.2 Outstanding
repos 108,501 108,501 292,527 292,527
1.3 Other loans:
(a) Outstanding repos
(b) Finance lease
(c) Other
2. Debt securities
2.1 Structured
securities
2.2 Other debt
securities 25,429 25,330
Total 643,229 643,229 644,089 618,660 25,330
Key: BV = book value, FV = fair value
No assets impairment was recorded.
Line A. Credits ex art. 14 (c) is comprised of different deposits from free deposits held with the Public
Authorities of the Holy See and Vatican City State with the statutory purpose of administering
the assets owned by the Holy See (at present, APSA).
6.2 Credits with specific hedges
The Institute did not hold credits with specific hedges and it has not outstanding finance leases.
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ITEM 70 ASSETS – DUE FROM CUSTOMERS
7.1 Detail by type
2016 2015
Book value Fair value Book value Fair value
Impaired Impaired Non
Purch- Other L1 L2 L3
Non
Purch- Other L1 L2 L3 impaired
ased
impaired
ased
A. Loans
1. Current accounts 8,424 27 8,451 518 53 570
2, Outstanding repos
3. Mortgages
4. Credit cards,
personal loans and
loans on salary
5. Finance lease
6. Factoring
7. Other loans 12,495 8,207 21,967 13,416 9,944 24,804
B. Debt securities
1. Structured securities
2. Other debt securities 62,303 62,116
Total 20,919 8,234 30,418 76,237 9,997 62,116 25,374
Additional supporting information is provided in Part 5 “Information on risks and related hedging
policies” of this document.
It is to be mentioned that the Institute is not authorized by the Autorità di Informazione Finanziaria
to carry out the activity of “lending” (cfr. art. l (l) (b) of the Law n. XVIII and art. 3 (24) (b) of
the Regulation No. l), as credit activities on its own. However, it is authorized to make “advances”
that is to disburse funds to its clients and to a limited extent following guarantee of future income
(such as, for example, in the case of the advance of salary or pension paid by the Holy See or the
Governatorato of Vatican City) or guaranteed by financial assets of the same amount deposited by
the clients at the Institute.
7.2 Detail by borrowers
2016 2015
N Impaired Impaired on Non
impaired Purchased Other impaired Purchased Other
1. Debt securities
(a) Public Entities
(b) Financial companies 52,304
(c) Insurance companies 10,000
(d) Non financial companies
(e) Other subjects
2. Loans to:
(a) Public Entities 8,290
(b) Financial companies
(c) Insurance companies
(d) Non financial companies 3,315 3,510
(e) Other subjects 9,314 8,234 10,423 9,997
Total 20,919 8,234 76,237 9,997
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7.3 Credits with specific hedges
The Institute did not hold credits with specific hedges.
ITEM 100 ASSETS – INVESTMENT IN SUBSIDIARIES
10.1 Information on investment in subsidiaries
The Institute holds a financial investment in a real estate company, SGIR S.r.l., which is based in
Italy and is 100% owned by the IOR.
10.2 Material investments in subsidiaries: book value, fair value and dividends received
The value of the investment in the real estate company SGIR S.r.l. was EUR 15.8 m.
There was no change in the value of the investment during 2016 and no dividends were paid.
The equity of SGIR S.r.l. as of 31 December 2016 was EUR 22.6m (2015: EUR 22.1m), including
EUR 12.4m (2015: EUR 12.4m) for a Fiscal Revaluation Reserve.
Being the investment in an unlisted company, IOR has not carried out the measurement of the fair
value.
10.3 Material investment in subsidiaries: financial information
A. Subsidiaries
entities
SGIR S.r.l. 262 596 25,783 3,975 100 1,687 -1 8 869 443 443 443
B. Entities
subject to
joint control
C. Entities
subject to
significant
influence
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Compreh
ensive
income
(3) = (1)
+ (2)
Other
income
items
after taxes
(2)
Profit
(loss)
for the
year (1)
Profit
(loss)
from
groups of
assets
being
disposed
after taxes
Profit
(loss)
from
current
operations
after taxes
Profit
(loss)
from
current
operations
before
taxes
Value
adjustmen
ts and
writebacks
on
tangible
and
intangible
assets
Financial
assets
Non
financial
assets
Financial
liabilities
Non
financial
liabilities
Total
income
Interest
margin
Cash and
cash
equivalents
ITEM 110 ASSETS -TANGIBLE ASSETS
11.1 Tangible assets in-use: detail of the assets measured at cost
2016 2015
1. Owned assets
(a) land
(b) buildings
(c) furniture 1 14
(d) electronic equipment 115 59
(e) other 11
2. Assets acquired under finance lease
(a) land
(b) buildings
(c) furniture
(d) electronic equipment
(e) other
Total 116 84
11.4 Tangible assets held for investment: detail of the assets measured at fair value
2016 2015
FV FV
BV
L1 L2 L3
BV
L1 L2 L3
1. Owned assets
(a) land
(b) buildings 2,980 2,980 2,897 2,897
2. Assets acquired
under finance lease
(a) land
(b) buildings
Total 2,980 2,980 2,897 2,897
Key: BV = book value, FV = fair value
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11.5 Tangible assets in- use: annual changes
Land Buildings Furniture Electronic Other Total
equipment
A. Opening balance 2,628 4,335 32 6,995
A.1 Net total adjustments (2,614) (4,276) (21) (6,911)
A.2 Net opening balance 14 59 11 84
B. Increases:
B.1 Purchases 1 113 114
B.2 Capitalised improvement costs
B.3 Write-backs
B.4 Positive fair value differences
recognized in
a) Net Equity
b) Income Statement
B.5 Positive foreign exchange differences
B.6 Transfer from investment property
B.7 Other changes
C. Decreases:
C.1 Sales
C.2 Depreciation (14) (57) (11) (82)
C.3 Impairment losses recognized in:
a) Net Equity
b) Income Statement
C.4 Negative fair value differences
recognized in
a) Net Equity
b) Income Statement
C.5 Negative foreign exchange differences
C.6 Transfer to:
a) investment property
b) assets being disposed
C.7 Other changes
D. Net closing balance 2,629 4,448 32 7,109
D.1 Total net adjustments (2,628) (4,333) (32) (6,993)
D.2 Gross closing balance 1 115 116
All tangible assets in-use were measured at cost.
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11.6 Tangible assets held for investment: annual changes
Total
Land Buildings
A. Opening balance 2,897
B. Increases:
B.1 Purchases
B.2 Capitalised improvement costs
B.3 Positive fair value differences 136
B.4 Write-backs
B.5 Positive foreign exchange differences
B.6 Transfer from tangible assets for functional use
B.7 Other changes
C. Decreases
C.1 Sales
C.2 Depreciation (53)
C.3 Negative fair value differences
C.4 Impairment losses
C.5 Negative foreign exchange differences
C.6 Transfer to other assets
a) tangible assets for functional use
b) current assets being disposed
C.7 Other changes
D. Closing balance 2,980
All the tangible assets held for investment are measured at fair value.
The item incudes 5 investment properties received in the past through donations, totaling EUR
3.0m. The item increased from 31 December 2015 due to an increase in fair values.
The Institute has surveys performed by a qualified independent expert.
As of 31 December 2016, the properties did not generate any rental income. In October 2015, the
Institute signed a lease agreement with its subsidiary SGIR for the use of four properties for free.
In 2016 SGIR did not receive rental income on these properties.
In relation to the fifth property, please note that during the month of December 2016 the IOR took
the full ownership. At the same time the Institute has not yet the property of the real estate, due
to the completion of some formalities related to the inheritance.
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ITEM 120 ASSETS – INTANGIBLE ASSETS
12.1. Detail by asset
2016 2015
Definite Indefinite Definite Indefinite
life life life life
A.1. Goodwill
A.2. Other intangible assets
A.2.1 Assets carried at cost:
(a) intangible assets generated internally
(b) other assets 1,044 875
A.2.2 Assets carried at fair value
(a) intangible assets generated internally
(b) other assets
Total 1,044 875
Intangible assets consist of software programs and cost incurred to implement them.
12.2 Annual changes
Other intangible assets Other intangible
generated internally assets: other
Goodwill DEF INDEF DEF INDEF Total
A. Opening balance 6,229 6,229
A.1 Total net adjustments (5,354) (5,354)
A.2 Net opening balance 875 875
B. Increases
B.1 Purchases 852 852
B.2 Increases of intangible
assets generated internally
B.3 Write-backs
B.4 Positive fair value differences
recognized in
– Net Equity
– Income Statement
B.5 Positive foreign exchange differences
B.6 Other changes
C. Decreases
C.1 Sales
C.2 Impairment losses
– Depreciation (683) (683)
– Write downs recognized in
+ Net Equity
+ Income Statement
C.3 Negative fair value differences
recognized in
– Net Equity
– Income Statement
C.4 Transfer to non-current assets
being disposed
C.5 Negative foreign exchange differences
C.6 Other changes
D. Net closing balance 7,081 7,081
D.1 Total net adjustments (6,037) (6,037)
E. Gross closing balance 1,044 1,044 71
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Annual report 2016
Intangible assets are carried at cost.
The IOR does not have internally generated intangible assets.
ITEM 150 ASSETS – OTHER ASSETS
15. Other Assets
2016 2015
1.Gold 22,394 22,766
2. Medals and precious coins 10,490 10,437
3. Securities sold not settled
4. Sundry debtors 8,095 7,553
5. Prepayments 980 801
Total 41,959 41,557
Gold is mainly deposited with the U.S. Federal Reserve, while medals and precious coins are kept
in the IOR vaults.
Gold is carried at the lower of cost and net estimated recoverable amount.
Medals and precious coins are appraised on the basis of their weight and the quality of gold and
silver they contain, carried at the lower of cost and net estimated recoverable amount.
For further information regarding the accounting policies adopted, their impacts and their evaluation,
please refer to Part. 1 “Accounting policies” Section 1.1.4 “Other aspects” in these financial
statements.
Also included in Other Assets is Sundry debtors, for EUR 6.5m, representing commission from asset
management services not yet received at the closing date of the financial statements.These commissions,
pertaining to the second half of 2016, were collected at the beginning of 2017.
Furthermore, other assets include prepayments, which is comprised of EUR 799,000 deposited as
guarantees for credit cards transactions and EUR 160,000 in advances for credit cards transactions.
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LIABILITIES
ITEM 10 LIABILITIES – DUE TO BANKS
1.1 Detail by product
2016 2015
1. Due to Public Authorities
of which:
– Public Authorities ex art. 24 (c) 10,597
2. Due to foreign Public Authorities
of which:
– Public Authorities ex art. 24 (d)
3. Due to banks
3.1 Current accounts and demand deposits
3.2 Fixed-term deposits
3.3 Loans
3.3.1 Reverse repos
3.3.2 Other
3.4 Amounts due under repurchase agreements of own equity instruments
3.5 Other liabilities
Total 10,597
Fair value – level 1 10,597
Fair value – level 2
Fair value – level 3
Total fair value – 10,597
Due to banks include amounts due to the Holy See and Vatican City State Public Authorities, the
statutory purpose of which is to administer the Holy See’s proprietary assets (at present APSA).
Amounts due as of 31 December 2015 was EUR 10.6m comprised solely by debt on demand to
APSA.
As of 31 December 2016, there were no amounts due to banks.
1.2 Subordinated liabilities
There are no subordinated liabilities recognized in this item.
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ITEM 20 LIABILITIES – DUE TO CUSTOMERS
2.1 Detail by type
2016 2015
1. Current accounts and demand deposits 2,397,688 2,319,257
2. Fixed-term deposits 1,236 4,146
3. Loans
3.1 Reverse repos
3.2 Other
4. Amounts due under repurchase agreements of own equity instruments
5. Other payables
Total 2,398,924 2,323,403
Fair value – level 1
Fair value – level 2
Fair value – level 3 2,398,924 2,323,403
Total fair value 2,398,924 2,323,403
Due to customers had a slight increase from 2015, recording, on one hand, an increase in the number
of accounts and demand deposits, offset by a decrease in fixed-term deposits.
The above amounts includeliquidity and term deposits related to the Asset Management agreements,
for which IOR is the depository institution.
These are comprised of:
Deposits related to Asset management accounts 2016 2015
Deposits on demand 417,026 424,815
Time deposits
Total 417,026 424,815
The item Due to customers also includes a deposit at the disposal of the Commission of Cardinals
to support works of religion. As of the balance sheet date, this amounted to EUR 6.3m (2015: EUR
11.3m). The EUR 5.0m decrease was mainly due to the distribution of funds for charitable activities.
2.2 Subordinated liabilities
There are no subordinated liabilities recognized in this item.
ITEM 100 LIABILITIES – LEGATES
The item includes the deposits of the “Legates” amounting to EUR 47.1m (2015: 48.3m) as of 31
December 2016, comprised of 293 funds (2015: 295) donated to the Institute. The IOR has the
burden, for a significant period of time, of fulfilling specific ecclesiastical functions or otherwise
achieving purposes related to works of piety, apostolate and charity works, on the basis of its annual
income.
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Annual report 2016
ITEM 110 LIABILITIES – OTHER LIABILITIES
Other liabilities 2016 2015
Inheritances to be settled 6,384 7,587
Invoices to be received 4,515 5,161
Outstanding checks 1,070 1,105
Remunerations to be paid 914 966
Other sundry creditors 908 404
Funds for charitable contributions 3,220 3,303
Liabilities for guarantees issued and commitments towards third parties 1,699 1,561
Securities purchased not settled
Total 18,710 20,087
The item “Inheritances to be settled” represents the property values of deceased donors pending resolution
of inheritance issues.
The amount of EUR 1.7m (2015: EUR 1.6m) reported under “Liabilities for guarantees issued and
commitments towards third parties” is due to guarantees in addition to the commitments to third
parties to lend funds of uncertain use (see paragraph 13.1 Guarantees and commitments).
Funds for charitable contributions are comprised of the Fund for Holy Masses and Fund for Missionary
Activities.
Fund for Missionary Activities
The Fund for Missionary Activities is used to distribute contributions to congregations and institutions
that operate missionary and charitable activities.
It is mainly funded by small donations with a commitment to execute Missionary activities.
Donations and distributions are recorded directly into the Fund’s account.
Distributions to the beneficiaries are approved by a Committee comprised of the Prelate, the “Aggiunto
al Direttore” and the Client Relationship Manager.
Fund for Holy Masses
The Fund for Holy Masses is used to distribute contributions to priests for Holy Masses.
It is financed through small donations with a commitment to the Holy Masses.
Donations and distributions are directly recorded into the Fund’s account.
Distributions to the priests are approved by a Committee comprised of the Prelate, the “Aggiunto
al Direttore” and the Client Relationship Manager.
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The detail of Funds for charitable contributions is as follows:
Funds for charitable 2016 2015
A. Fund for Missionary Activities 156 239
1. Balance at 1 January 239 189
2. Donations received 86 145
3. Distributions for Missionary Activities (169) (95)
B. Fund for Holy Masses 3,064 3,064
1. Balance at 1 January 3,064 2,971
2. Donations received 83 154
3. Distributions for Holy Masses (83) (61)
Total 3,220 3,303
Distributions of funds to beneficiaries are subject to strict internal policies.
It should be noted that the charitable activities of the Commission of Cardinals are made through
a deposit included in item 20 of the liabilities.
ITEM 120 LIABILITIES – STAFF SEVERANCE FUND
10.1 Annual changes
2016 2015
A. Opening balance 6,788 6,551
B. Increases
B.1 Allocation for the year 534 530
B.2 Other changes 518
C. Decreases
C.1 Benefits paid (624) (84)
C.2 Other changes (223) (209)
D. Closing balance 6,993 6,788
The Staff severance fund comprises indemnities paid to personnel when they leave the IOR.
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The change in the fund balance is summarised as follows:
2016 2015
Balance at 1 January 6,788 6,551
Current costs 459 457
Contribution by individuals 75 73
Transfers to benefit plan for pensions (223)
Advances (80) (84)
Advances restitution 148
Consideration paid during the year (544)
Actuarial (gain) loss of the year 370 (209)
Balance at 31 December 6,993 6,788
The actuarial assumptions used for the valuation of the Staff severance fund are the same as those
used for the Benefit Plan Liability for pensions, described in Item 130 (a) Liabilities.
As defined by IAS 19, a sensitivity analysis was performed on the variation of the main actuarial
assumptions included in the calculation model; these assumptions are:
• annual discount rate;
• annual rate of salary growth;
• annaul inflation rate;
• annual mortality rate
Annual discount rate Annual rate of salary growth Annual inflation rate Mortality rate
Liabilities +0,50 p.p. -0,50 p.p. +0,50 p.p. -0,50 p.p. +0,50 p.p. -0,50 p.p. +0,025 p.p. -0,025 p.p.
6,866 7,127 7,117 6,874 6,992 6,994 6,965 7,008
10.2 Other information
Please refer to the paragraphs regarding the accounting policies for more information on the calculation
of employee termination indemnities.
The portion of employee gross salaries retained by the Institute is 1.5%.
No payments were made to the Vatican Pension Plan.
Funds were managed by the IOR Treasury department.
ITEM 130 LIABILITIES – ALLOWANCES FOR RISKS AND CHARGES
11.1 Detail by type
2016 2015
1. Post employment benefits for pensions 121,088 108,338
2. Other allowances for risks and charges
2.1 legal disputes
2.2 staff expenses
2.3 other 3,500 16,500
Total 124,588 124,838
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Annual report 2016
11.2 Annual changes
Provision for pension
and similar obligations Other provisions Total
A. Opening balance 108,388 16,500 124,838
B. Increases
B.1 Provision for the year 2,731 2,731
B.2 Time value changes
B.3 Changes due to discount rate variations 12,905 12,905
B.4 Other changes 223 223
C. Decreases
C.1 Utilization in the year (3,109) (13,000) (16,109)
C.2 Changes due to discount rate variations
C.3 Other changes
D. Closing balance 121,088 3,500 124,588
11.3 Pension plan liabilities defined benefit obligations
More in detail, the changes in the Plan concern the following items:
2016 2015
Opening balance 108,338 117,396
Current Service cost 607 780
Interest cost 2,031 1,811
Contribution by individuals 93 96
Transfer from staff severance fund 223
Pensions paid during the year (3,109) (3,075)
Transfer out
Actuarial (gain) loss of the year 12,905 (8,670)
Closing balance 121,088 108,338
The actuarial valuation of the defined benefit plan liability was performed using the following assumptions:
2016 2015
Annual inflation rate 2.00% 2.00%
Annual discount rate 1.43% 1.93%
Annual rate for revaluation of pension 2.00% 2.00%
Annual rate of real increase salary 2.35% 2.35%
The Current Service Cost is the actuarial present value of benefits due to employees for services rendered
during the period.
The Interest Cost is the increase in the present value of the obligation from the passage of time and
it is proportional to the discount rate used in the assessment of the previous year’s liabilities.
The Actuarial gain/loss is the change in the liability in the present year arising from:
• the effect of the differences between the previous actuarial assumptions and what has actually
occurred;
• the effect of the changes in actuarial assumptions.
The results are recognized directly to Equity in a specific reserve named “Valuation reserves” “Post- 78
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Annual report 2016
employment benefit actuarial gain (loss) reserves” and the actuarial gain or loss is recorded in Other
Comprehensive Income.
For Staff severance fund and Provisions for pensions and similar obligations, in 2016, the Institute
recognized an actuarial loss of EUR 13.3m (2015: gain of EUR 8.9m) in Other Comprehensive
Income. Consequently, change in the “Valuation reserves” (item 140 Equity) was a loss of EUR
46.0m (2015: EUR -32.7m); the increased loss compared to the prior year is due to the decrease
in the discount rate to 1.43% in 2016 from 1.93% in 2015.
A total of 102 employees are active and contribute to the Pension plan (2015:109). A total of 74
former employees are in retirement and benefit from the plan (2015: 70).
As defined by IAS 19, a sensitivity analysis was performed on the variation of the main actuarial
assumptions included in the calculation model; these assumptions are:
• annual discount rate;
• annual rate of salary growth;
• annaul inflation rate;
• annual mortality rate.
Annual discount rate Annual rate of salary growth Annual inflation rate Mortality rate
Liabilities +0,50 p.p. -0,50 p.p. +0,50 p.p. -0,50 p.p. +0,50 p.p. -0,50 p.p. +0,025 p.p. -0,025 p.p.
110,727 133,037 120,674 119,123 131,768 109,479 120,757 121,407
11.4 Other information
Please refer to the paragraphs regarding the accounting policies for more information on the calculation
of the pension fund.
The portion of employee gross salaries retained by the Institute is 6%.
No payments were made to the Vatican Pension Plan.
Funds were managed by the IOR Treasury department.
11.5 Other provisions
As of 31 December 2016, based on analysis performed with the support of legal consultants, a liability
of EUR 3.5m was estimated for potential tax liabilities. The reestimation led to the recognition
of EUR 13m in income included in the item 160 Income Statement “Net provisions to risks
and charges” corresponding to item 130 Liabilities “Provision for risks and charges” line (b)
“Other provisions” of the balance sheet. As the estimate was based on critical assumptions, actual
results may differ from what is expected when the future event will take place.
The relative content of the item was explained in the paragraph 1.1.4.1 Other aspects – Critical accounting
estimates and judgements, Part 1 Accounting policies.
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ITEM 160 170 EQUITY – RESERVES
12.1 Capital
Capital, as a separate component of Equity, represents a permanent endowment that cannot be reduced
or distributed, except in case of cessation or liquidation of the entity.
During 2016, no changes were recorded in Capital balance, amounting to EUR 300m.
Securities and liquid funds made up the Capital; in detail, deposits to APSA, other liquid assets,
supranational bonds and governative bonds with high quality credit rating.
12.2 Reserves
The equity balance is comprised of two different reserves, Available and Unavailable reserves.
Unavailable Reserves are earning reserves designed to further strengthen the Institute’s Equity and
long-term stability.
Available Reserves are earning reserves representing earnings that could potentially fulfill a “stabilization”
function, subject to a resolution of the Commission of Cardinals.
During 2016, no changes were recognized in Unavailable Reserves, amounting to EUR 100m, and
Available Reserves, amounting to EUR 282m.
Unavailable reserves are comprised of securities, properties and precious metals. In detail are gold
bars, medals and coins, investment in subsidiary (SGIR S.r.l.), real estate properties and liquid financial
instruments traded on regulated markets.
The Available Reserve is comprised of securities, representing liquid financial instruments traded
on regulated markets.
13 ADDITIONAL INFORMATION
13.1 Guarantees and commitments
2016 2015
1) Financial guarantees given
a) Banks 27 27
b) Customers 15 41
2) Commercial guarantees given
a) Banks
b) Customers
3) Irrevocable commitments to lend funds
a) Banks
b) Customers
i) of certain use
ii) of uncertain use 4,000 4,000
4) Underlying commitments on credit derivatives: protection sales
5) Assets pledged as collateral of third party commitments
6) Other commitments
Total 4,042 4,068
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At the balance sheet date, the Institute has a commitment of EUR 4m of uncertain use issued in
favor of third parties.
The IOR issued in past three guarantees covered by assets held in custody.
No new guarantees were issued in 2016.
The guarantees were initially recognized at their nominal value, which is their fair value. In subsequent
periods, the guarantees are reported at the amount determined in accordance with IAS 37
“Provisions, Contingent Liabilities and Contingent Assets”.
13.4 Asset Management and Brokerage on behalf of third parties
2016 2015
1. Trading on behalf of customers
(a) purchases
(i) settled 129,087
(ii) to be settled
(b) sales
(i) settled 84,530
(ii) to be settled
2. Portfolio management (assets management)
(a) individual 3,110,929 3,185,685
(b) collective
3. Custody and administration of securities
(a) third party security held in deposit: related to depositary bank activities
(excluding portfolio management)
(i) security issued by the entity that prepare the financial statement
(ii) other securities
(b) third party securities held in deposit: other (excluding portfolio management)
(i) security issued by the entity that prepare the financial statement
(ii) other securities
(c) third party securities deposited with third parties 554,763 646,161
(d) proprietary portfolio securities deposited with third parties 2,508,160 2,586,923
4. Other operations
Assets under Management agreements are valued using the mark-to-market method. They include
the total value of portfolios, and liquid and term deposits. Accruals are also included, both on securities
and on liquid and term deposits.The IOR is the depository of liquid and for term deposits,
amounting to EUR 417.2m (2015: EUR 424.8m), as disclosed in item 20 Liabilities “Due to customers”.
Assets under custody agreements are also valued based on current bid prices, using the mark-to-market
method. They also include accruals on interest to be received on debt securities.
Due to the change in accounting system, the data for 2015 were too heavy to be extracted and barely
relevant in comparison to the information provided.
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PART 3. INFORMATION ON INCOME STATEMENT
ITEM 10 INCOME STATEMENT – INTEREST AND SIMILAR INCOME
1.1 Interest income and similar income: detail
2016 2015
Debt Loans Other Total Total
securities transactions
1. Financial assets held for trading 22,574 22,574 26,202
2. Financial assets available for sale
3. Financial assets held to maturity 15,217 15,217 16,284
4. Due from banks 135 1,480 1,615 3,844
5. Due from customers 46 380 426 2,311
6. Financial assets carried at fair value
7. Hedging derivatives
8. Other assets
Total 37,972 1,860 39,832 48,641
Interest and similar income (other than those recorded in the item Net value adjustments/write
backs) accrued during the year in positions classified as impaired at the balance sheet date amounted
to EUR 310,000. They were directly deducted from line 5 in the table above.
ITEM 20 INCOME STATEMENT – INTEREST AND SIMILAR EXPENSES
1.4 Interest and similar expenses: detail
2016 2015
Payables Securities Other Total Total
transactions
1. Due to Public Entities
(i) Public Authorities
(ii) Foreign Public Authorities
(iii) International and Regional Organizations
2. Due to banks (52) (52) (16)
3. Due to customers (3,117) (3,117) (4,987)
4. Outstanding securities
5. Financial liabilities held for trading
6. Financial liabilities designated at fair value through profit and loss
7. Other liabilities and funds
8. Hedging derivatives
9. Due to other subjects
Total (3,169) (3,169) (5,003)
In 2016 the Institute recorded a general decrease in all items related to interest margin, both income
and expense, bringing consequently to a net reduction in the Interest Margin.
Interest income decreased due to the impact of lower interest rates determined by the European Central
Bank in 2014, 2015 and 2016, and the expiration of many positions with higher interest rates.
Interest expense decreased on interest payable on customer deposits (-37%) from the expiration of
term deposits with high interest rates. 82
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Annual report 2016
ITEM 40 INCOME STATEMENT – FEE AND COMMISSION INCOME
2.1 Fee and commission income: detail
2016 2015
a) Guarantees given/received 1 1
b) Credit derivatives
c) Administration, brokerage and consultancy services:
1. trading in financial instruments 654 1,340
2. trading in currencies
3. portfolio management
3.1 individual 12,483 13,667
3.2 collective
4. Custody and administration of securities 113 208
5. Custodian bank
6. Securities placement
7. Receipt and transmission of orders activity
8. Consulting
8.1 investments
8.2 financial structure
9. Distribution of third-party services
9.1 portfolio management
9.1.1 individual
9.1.2 collective
9.2 insurance products
9.3 other products
d) collection and payment services 2,196 2,053
e) servicing of securitization operations
f) factoring services
g) rate and tax collection office services
h) multilateral trading systems management
i) current account keeping and management 369 400
j) other services 21 41
Total 15,837 17,710
The decrease in Fee and Commission income was due to the general reduction in customer transactions,
the decrease in assets under management agreements, and the shift of some high network
clients from equity lines to asset management lines (especially bond ones) with lower commission.
2.2 Fee and commission income: distribution channels of products and services
All the IOR products and services are offered at IOR locations in Vatican City State.
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ITEM 50 INCOME STATEMENT – FEE AND COMMISSION EXPENSE
2.3 Fee and commission expense: detail
2016 2015
a) Guarantees given/received
b) Credit derivatives
c) Administration, brokerage and consultancy services:
1. trading in financial instruments (83) (648)
2. trading in currencies
3. portfolio management
3.1 own portfolio
3.2 third-party portfolio
4. Custody and administration of securities (1,613) (913)
5. Placement of financial instruments
6. Sales of financial instrument, products and services through other outlets
d) Collection and payment services (761) (921)
e) Administration and management of current accounts (571)
f) Other services (1)
Total (3,029) (2,482)
The increase in Fee and commission expense was mainly due to the increase in custody and administration
fees for securities (doubled compared with 2015) and fee and commissions charged by correspondent
banks on current accounts of the Institute as charges for the management of liquidity.
ITEM 70 INCOME STATEMENT – DIVIDENDS AND SIMILAR INCOME
3 Dividends and similar income: detail
2016 2015
Dividends Income Dividends Income
from from
UCI UCI
A. Financial assets held for trading 860 812 686 800
B. Financial assets available for sale 435 468
C. Financial assets carried at fair value through profit and loss
D. Investment in subsidiaries
Total 1,295 812 1,154 800
Dividends received in 2016 for financial assets held for trading was EUR 1.7m (2015: EUR 1.5m),
an increase of 12.5%.
In 2016, the Institute received dividends of EUR 435,000 from investment securities recorded as
financial assets available for sale (2015: EUR 468,000).
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ITEM 80 INCOME STATEMENT – NET INCOME FROM TRADING ACTIVITIES
4. Net income from trading activities: detail
2016
Gains Profit from Losses Losses from Net
trading trading income
(A) activities (B) (C) activities (D) [(A+B) – (C+D)]
1. Financial assets held for trading
1.1 Debt securities 6,167 1,429 6,041 1,555
1.2 Equity securities 1,603 1,509 94
1.3 UCI units 1,693 14,445 (12,752)
1.4 Loans
1.5 Other 126 126
2. Financial liabilities held for trading
2.1 Debt securities
2.2 Payables
2.3 Other
3. Financial assets and liabilities:
exchange differences 1,529 470 5 1,994
4. Derivatives
4.1 Financial derivatives
– On debt securities and interest rates
– On equity securities and stock indices
– On currencies and gold
– Other
4.2 Credit derivatives
Total 10,992 2,025 (22,000) (8,983)
2015
Gains Profit from Losses Losses from Net
trading trading income
(A) activities (B) (C) activities (D) [(A+B) – (C+D)]
1. Financial assets held for trading
1.1 Debt securities 2,467 8,698 11,632 16,670 (17,137)
1.2 Equity securities 2,330 2,604 1,873 3,368 (307)
1.3 UCI units 63 104 18 149
1.4 Loans
1.5 Other 18 18
2. Financial liabilities held for trading
2.1 Debt securities
2.2 Payables
2.3 Other
3. Financial assets and liabilities:
exchange differences 24 2,727 236 617 1,899
4. Derivatives
4.1 Financial derivatives
– On debt securities and interest rates
– On equity securities and stock indices
– On currencies and gold
– Other
4.2 Credit derivatives
Total 4,884 14,133 13,741 20,673 (15,378)
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Annual report 2016
Below is a summary of the net trading results in 2016 compared to 2015.
In 2016, debt securities recognized a gain of EUR 1.6m from a loss of EUR 17.1m in 2015. Realized
gain from trading activity was EUR 1.4m compared to a loss of EUR 8.0m in 2015, and the
unrealized gain was EUR 120,000 compared to a loss of EUR 9.1m in 2015.
In 2016, equity securities recognized a gain of EUR 94,000 from a loss of EUR 307,000 in 2015.
No realized profit (loss) was recognized compared to a loss of EUR 764,000 in 2015, while unrealized
gain (loss) was EUR 94,000, compared to EUR 457,000 in 2015.
In 2016, UCI units recognized a loss of EUR 12.8m from a gain in 2015 of EUR 149,000. No realized
gain was recorded in 2016 compared to a gain of EUR 86,000 in 2015, while unrealized loss
was EUR 12.8m compared to an unrealized gain of EUR 63,000 in 2015.
Line 1.5 “Financial assets held for trading: other” includes gains (losses) from currency trade, gold
and other precious metals, recognizing a gain of EUR 126,000 in 2016 from EUR 18,000 in 2015
(realized).
“Financial assets and liabilities: exchange differences” recognized a gain of EUR 2.0m from a profit
of EUR 1.9m in 2015, comprised of EUR 470,00 realized profit in 2016 compared to EUR 2.1m
in 2015 and unrealized profit of EUR 1.5m in 2016 compared to unrealized loss of (EUR
212,000) in 2015.
ITEM 100 INCOME STATEMENT – PROFIT (LOSS) ON DISPOSAL OR REPURCHASE
6. Profit (loss) on disposal or repurchase: detail
Voci/Componenti reddituali 2016 2015
Profit Losses Net Profit Losses Net
income income
Financial assets
1. Due from banks
2. Due from customers
3. Financial assets available for sale
3.1 Debt securities
3.2 Equity securities 1.518 (19) 1.499
3.3 UCI units
3.4 Loans
4. Financial assets held to maturity
Total assets 1.518 (19) 1.499
Financial liabilities
1. Due to banks
2. Due to customers
3. Outstanding securities
Total liabilities
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ITEM 130 INCOME STATEMENT – NET LOSSES/REVERSAL ON IMPAIRMENT
8.1 Net impairment losses on loans: detail
Value adjustments (1) Write-backs (2)
Specific Specific Portfolio
2016 2015
Derecognition Other
Portfolio
ABAB (1)+(2)
1. Due from banks
– Loans
– Debt securities
2. Due from customers
Purchased impaired loans
– Loans
– Debt securities
Other receivables
– Loans (1,453) 350 58 (1,045) 353
– Debt securities
Total (1,453) 350 58 (1,045) 353
8.2 Net impairment losses on financial assets available for sale: detail
Value adjustments (1) Write-backs (2)
Specific Specific
2016 2015
Derecognition Other A B (1)+(2)
1. Debt securities
2. Equity securities (148) (148)
3. UCI units
4. Loans to banks
5. Loans to customers
Total (148) (148)
8.4 Net impairment losses on other financial assets: detail
Value adjustments (1) Write-backs (2)
Specific Specific Portfolio
2016 2015
Derecognition Other
Portfolio
ABAB (1)+(2)
1. Guarantees given (138) (138) (156)
2. Credit derivatives
3. Commitments to lend funds
4. Other operations
Total (138) (138) (156)
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ITEM 150 INCOME STATEMENT – ADMINISTRATIVE EXPENSES
9.1 Personnel expenses: detail
2016 2015
A. Staff
1. Wages and salaries (5,078) (5,534)
2. Social security charges
3. Termination indemnities
4. Supplementary benefits (630) (658)
5. Provisions for termination indemnities (459) (457)
6. Provisions for post employment benefits
(a) defined contribution plans
(b) defined benefit plans (2,638) (2,591)
7. Payments to external pension plans
(a) defined contribution plans
(b) defined benefit plans
8. Other benefits in favor of employees (546) (889)
B. Current Personnel with contracts pursuant to ex art. 10 (1)
1. letter (b)
2. letter (c)
3. letter (d)
C. Fees and charges for:
1. Board of Superintendence (504) (796)
2. Directorate (299) (241)
3. Revisori (91) (101)
D. Early retirement cost
E. Recovery of expenses for employees seconded to other entities
F. Reimbursement of expenses for employees of the institutions and organizations
of the Holy See and the Vatican City State placed at the Institute
Total (10,245) (11,267)
9.2 Average number of employees by categories
Type Total Managers Officials Staff
Average number 104 2 5 97
Reimbursement of expenses for employees of the institutions and organizations of the Holy See and
the Vatican City State placed at the Institute.
9.3 Post employment defined benefit plans: costs and revenues
Post employment defined benefit plans: costs 2016 2015
Current Service cost of internal Pension Plan 607 780
Interest cost of internal Pension Plan 2,031 1,811
Post employment costs: contribution to Vatican Pension Plan 630 658
Total Costs 3,268 3,249
Post employment defined benefit plans: revenues
Total 3,268 3,249
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9.5 Professional service expenses: detail
2016 2015
A. Professional services expenses
1. Legal services (2,437) (4,552)
2. Directional consultants (718) (1,438)
3. Technical consultants (288) (301)
4. Operational consultants (342) (1,132)
5. Translational services (56) (41)
B. Expenses related to works contract
1. ex art. 10 (1) (a)
2. ex art. 11 (1)
C. Expenses related to outsourcing contracts
D. Expenses related to external auditors (121) (143)
Total (3,962) (7,607)
9.6 Other administrative expenses: detail
2016 2015
1. Software maintenances (1,441) (1,247)
2. Other maintenances (800) (592)
3. Local rent (1,000) (1,000)
4. Information providers (379) (483)
5. AIF contribution (346) (230)
6. Other expenses (913) (1,000)
Total (4,879) (4,552)
ITEM 160 INCOME STATEMENT – NET PROVISION FOR RISKS AND CHARGES
Detailed information is provided in Item 130 (b) Liabilities.
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ITEM 170 INCOME STATEMENT – NET VALUE ADJUSTMENTS TO/RECOVERIES ON TANGIBLE ASSETS
11. Net value adjustments to/recoveries on tangible assets: detail
2016
Depreciation Impairment Recoveries Net
losses income
(a) (b) (c) (a+b-c)
A. Tangible assets
A.1 Owned assets
– Functional use (83) (83)
– For investment
A.2 Acquired under finance lease
– Functional use
– For investment
Total (83) (83)
2015
Depreciation Impairment Recoveries Net
losses income
(a) (b) (c) (a+b-c)
A. Tangible assets
A.1 Owned assets
– Functional use (64) (64)
– For investment
A.2 Acquired under finance lease
– Functional use
– For investment
Total (64) (64)
ITEM 180 INCOME STATEMENT – NET VALUE ADJUSTMENTS TO/RECOVERIES ON INTANGIBLE ASSETS
12. Net value adjustments to/recoveries on intangible assets: detail
2016
Amortization Impairment Recoveries Net
losses income
(a) (b) (c) (a+b-c)
A. Intangible assets
A.1 Owned assets
– Generated internally by the Institute
– Other (683) (683)
A.2 Acquired under finance lease
Total (683) (683)
2015
Amortization Impairment Recoveries Net
losses income
(a) (b) (c) (a+b-c)
A. Intangible assets
A.1 Owned assets
– Generated internally by the Institute
– Other (512) (512)
A.2 Acquired under finance lease
Total (512) (512) 90
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Annual report 2016
ITEM 190 INCOME STATEMENT – OTHER OPERATING INCOME (EXPENSE)
13.1 Other operating income (expense): detail
2016 2015
A. Income 736 13,720
Extraordinary income 558 120
Recovery of amounts for gold and precious metals 178
Closure of past years issue 13,600
B. Expenses (729) (3,231)
1. Operating losses (715) (54)
2. Extraordinary expenses (14) (324)
3. Impairment of amounts for gold and precious metals (2,853)
Total 7 10,489
ITEM 220 INCOME STATEMENT – NET RESULT OF FAIR VALUE VALUATION OF TANGIBLE AND
INTANGIBLE ASSETS
15. Net result of fair value valuation of tangible and intangible assets: detail
Exchange differences
2016 Revaluations Impairment Positive Negative Net income
(a) (b) (c) (d) (a-b+c-d)
A. Tangible assets
A.1 Owned assets
– Functional use
– Held for investment 136 (53) 83
A.2 Acquired under finance lease
– Functional use
– Held for investment
B. Intangible assets
B.1 Owned assets
B.1.1 Generated internally by the Institute
B.1.2 Other
B.2 Acquired under finance lease
Total 136 (53) 83
Exchange differences
2015 Revaluations Impairment Positive Negative Net income
(a) (b) (c) (d) (a-b+c-d)
A. Tangible assets
A.1 Owned assets
– Functional use
– Held for investment 517 (16) 501
A.2 Acquired under finance lease
– Functional use
– Held for investment
B. Intangible assets
B.1 Owned assets
B.1.1 Generated internally by the Institute
B.1.2 Other
B.2 Acquired under finance lease
Total 517 (16) 501 91
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Annual report 2016
PART 4. INFORMATION ON COMPREHENSIVE INCOME
2016 Gross Income Net
amount tax amount
10. Profit (loss) for the year 36,001 36,001
Other comprehensive income that may not be reclassified
to the income statement
20. Tangible assets
30. Intangible assets
40. Defined benefit plans (13,275) (13,275)
50. Non current assets held for sale
60. Share of valuation reserves connected with investments
carried at equity
Other comprehensive income that may be reclassified
to the income statement
70. Hedges of foreign investment
(a) fair value changes
(b) reclassification to the income statement
(c) other changes
80. Foreign exchange differences
(a) fair value changes
(b) reclassification to the income statement
(c) other changes
90. Cash flow hedges
(a) fair value changes
(b) reclassification to the income statement
(c) other changes
100. Financial assets available for sale
(a) fair value changes (1,838) (1,838)
(b) reclassification to the income statement
– impairment losses 148 148
– gains (losses) from disposals (2,589) (2,589)
(c) other changes
110. Non current assets held for sale
(a) fair value changes
(b) reclassification to the income statement
(c) other changes
120. Share of valuation reserves connected with investments
carried at equity:
(a) fair value changes
(b) reclassification to the income statement
– impairment losses
– gains (losses) from disposals
(c) other changes
130. Total other comprehensive income (17,554) (17,554)
Total Comprehensive Income (item 10 + item 130) 18,447 18,447
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Annual report 2016
2015 Gross Income Net
amount tax amount
10. Profit (loss) for the year 16,127 16,127
Other comprehensive income that may not be reclassified
to the income statement
20. Tangible assets
30. Intangible assets
40. Defined benefit plans 8,880 8,880
50. Non current assets held for sale
60. Share of valuation reserves connected with investments
carried at equity
Other comprehensive income that may be reclassified
to the income statement
70. Hedges of foreign investment
(a) fair value changes
(b) reclassification to the income statement
(c) other changes
80. Foreign exchange differences
(a) fair value changes
(b) reclassification to the income statement
(c) other changes
90. Cash flow hedges
(a) fair value changes
(b) reclassification to the income statement
(c) other changes
100. Financial assets available for sale
(a) fair value changes 4,777 4,777
(b) reclassification to the income statement
– impairment losses
– gains (losses) from disposals
(c) other changes
110. Non current assets held for sale
(a) fair value changes
(b) reclassification to the income statement
(c) other changes
120. Share of valuation reserves connected with investments
carried at equity:
(a) fair value changes
(b) reclassification to the income statement
– impairment losses
– gains (losses) from disposals
(c) other changes
130. Total other comprehensive income 13,657 13,657
Total Comprehensive Income (item 10 + item 130) 29,784 29,784
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ATTACHMENTS
A.1 Disclosure concerning the fees of the independent auditors and services other than
auditing
During 2016, the IOR did not pay fees to the companies belonging to the network of the audit
firm Deloitte & Touche S.p.A. with the exception of those related to the audit of the annual accounts
amounting to EUR 121.
The fees due are those contractually agreed, inclusive of any indexation and reimbursement of expenses
calculated as a forfeit. Fees do not include out-of-pocket expenses or taxes.
A.2 Exchange rates as of the balance sheet date
The balances at year-end, denominated in foreign currencies, are measured at the exchange rates
observed by the European Central Bank on the last working day of the year (in 2016: 30 December).
For the other currencies, the rates used are those provided by infoproviders on the same date.
For the 2016 financial statements, the rates were determined as follows:
Currency 2016 2015
U.S. Dollars USD 1.0541 1.0926
Swiss Francs CHF 1.0739 1.0814
Canadian Dollars CAD 1.4188 1.5171
English Pounds GBP 0.8562 0.7380
Australian Dollars AUD 1.4596 1.4990
Japanese Yen JPY 123.40 131.66
Czech Crowns CZK 27.0210 27.029
Danish Crowns DKK 7.4344 7.4625
Hungarian Forints HUF 309.83 313.15
Norwegian Crowns NOK 9.0863 9.6160
Polish Zloty PLZ 4.4103 4.2400
Swedish Crowns SEK 9.5525 9.1878
Brazilian Reais BRE 3.4305 4.2590
South African Rand ZAR 14.4570 16.8847
Hong Kong Dollars HKD 8.1751 8.4685
South Korean Won KRW 1,224.94 1,284.79
Singapore Dollars SGD 1.5234 1.5449
New Zealand Dollars NZD 1.5158 1.5959
A.3 Date of authorisation for issue
The financial statements were presented and authorised for issuance by the Directorate on 27 March
2017 and approved by the Board of Superintendence on 26 April 2017.
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PART 5. INFORMATION ON RISKS AND HEDGING POLICIES
5.1 Introduction
The Institute’s policies and procedures for the management and monitoring of risks arising from
investments decisions, are summarized in the following paragraphs, with a focus on the parties involved
and their responsibilities. The Institute considers it appropriate:
a) to assign risk measurement functions and risk integrated control to a specific department,
headed by the Risk Management department;
b) to assign the functions dedicated to the definition of operating limits, the authorization of possible
overruns or payment requests within assigned limits, to the appropriate Risk Committee.
Other bodies of the Institute are involved and assigned with different tasks in risk management and
monitoring, such as the Board of Superintendence, Directorate, Internal Audit department, Treasury
department, Compliance.
This structure is based on the rules and the requirements provided by the Financial Information
Authority (AIF) for a compliant internal audit system, as defined by Regulation No.1/2015 on “Prudential
Supervision