The collapse of Banco Ambrosiano
- Giorgia Chenrui Dai, Alessandro Gaudio
- Mar 4
- 4 min read
Giorgia Chenrui Dai, Alessandro Gaudio, 12 January 2026
Banco Ambrosiano was, for much of the twentieth century, a central actor in Italy’s private banking sector. Headquartered in Milan and closely connected to religious and institutional finance, the bank enjoyed a reputation for being a “priests’ bank”, whose purpose was to "serve moral organisations, pious works, and religious bodies set up for charitable aims," stated Giuseppe Tovini, founder of Banco Ambrosiano.
The bank identified itself as a Catholic bank and, as such, prospective employees needed to show their certificate of baptism and a declaration of faith issued by their local parish in order to be accepted. Over time, thanks to this positioning, Banco Ambrosiano was able to build a strong reputation as an ethical institution, which would later complicate scrutiny when the first signs of financial misconduct began emerging.
The rise of Calvi
The key figure of this scandal is Roberto Calvi. He joined the bank in 1947 as a normal employee and advanced rapidly through its internal ranks, eventually becoming both Chief Executive Officer and Chairman thirty years later.
Calvi brought major changes in Banco Ambrosiano’s strategic direction. While the bank had always employed a prudent approach and focused on domestic clients, it increasingly turned towards international opportunities and the acquisitions of foreign institutions. The purchase of Banca del Gottardo in Switzerland marked the beginning of this strategy.
This expansion unfolded alongside the bank’s close relationship with the Institute for the Works of Religion (IOR), commonly known as the Vatican Bank. The connection strengthened Banco Ambrosiano’s standing and facilitated financial operations that lay beyond the reach of Italian supervisory authorities.
Early signs of anomalies
In late 1977, Roberto Calvi became the target of public accusations alleging he transferred large sums of money abroad. Although these claims did not immediately lead to anything, the seed of doubt regarding the bank’s credibility has been planted.
Indeed, beginning in April 1978, inspectors from the Bank of Italy conducted an extended review of Banco Ambrosiano’s operations. The investigation found out many irregularities, particularly in relation to the bank’s foreign activities, and these findings were formally reported to judicial authorities. However, the judge who was responsible for analysing the case, Emilio Alessandrini, was murdered in the following year by a terrorist group.
During this period, Banco Ambrosiano also experienced liquidity problems, which were temporarily alleviated through extraordinary financing provided by public and semi-public institutions, including significant support from Banca Nazionale del Lavoro and ENI.
The Collapse of the Bank
When Banco Ambrosiano collapsed, the crisis became official on 6 August 1982, when the Italian government took control of the bank and shut it down. In the weeks before, the Bank of Italy had conducted a second investigation, which revealed that the problems previously identified were far more extensive than initially understood. Investigators discovered that large sums had been moved through foreign companies and subsidiaries, and that many loans were hard to trace and might never be repaid.
Some documents later described major losses linked to the bank’s foreign associates, many of which were ultimately deemed unrecoverable. Estimates at the time placed the total losses at approximately $1.2–1.5 billion. The main fear was that people would panic, withdraw their money, and turn an already bad situation into a disaster.
The story also became famous because Roberto Calvi died in London in June 1982, at the same time the financial situation was getting worse. His death increased public suspicion and media pressure, and it made the collapse feel even more dramatic and confusing.
The New Banco Ambrosiano
To avoid a wider shock, institutions stepped in with emergency support, and a new bank, Nuovo Banco Ambrosiano, was created right after the liquidation to keep normal banking services running and to protect depositors as much as possible. The idea was to close the old structure that could not be trusted anymore, but keep branches and basic services alive under a new entity.
The Consequences
In the years after, the impact went beyond money. Many people lost trust in banks, because a well-known institution had hidden serious problems for a long time. The scandal also made regulators and
politicians focus more on clear accounts, stronger controls, and better supervision, especially when banks use foreign companies and complex international deals.
It also changed how people looked at “reputation” in finance. Banco Ambrosiano had been seen as safe and ethical, yet the crisis showed that a good image cannot replace real checks and transparent numbers. In the end, the case became a warning that when information is unclear and money moves across borders, problems can grow fast and become impossible to hide.
Sources
● Stradi. Lo scandalo del Banco Ambrosiano. 2018.
● Zotti. Banco Ambrosiano: storia del crack con radici in Vaticano. 2022.
https://investire.biz/economia-e-finanza/crac-banco-ambrosiano-storia-fallimento-banca-robert o-calvi-ciclone-finanza-vaticano
● Lovatti. La liquidazione del Banco Ambrosiano. 2009.
● Ardimento, Kopal. Italy: Banco Ambrosiano Emergency Liquidity Program, 1982. 2025. https://elischolar.library.yale.edu/journal-of-financial-crises/vol7/iss1/12/
● Camera dei Deputati. Ancora sulla vicenda del Banco Ambrosiano. 2016. https://www.camera.it/application/xmanager/projects/leg17/file/Banco_Ambrosiano.pdf
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