The Vatican Bank will continue to operate

Pope Francis has approved a plan to reform the Vatican Bank, founded in 1887, ending a year of speculation about a possible closure of the financial institution put in an embarrassing situation by the Catholic Church for decades, according to Reuters.

The stated objective of the Vatican Bank, whose formal name is the Institute for Religious Works, is to provide financial services to priests, religious and charitable institutions. But the bank was involved in several financial scandals and suspicious transactions with financial institutions in Italy.

"The Institute for Religious Works will continue to serve with care and provide specialized financial services worldwide for the Catholic Church ," said the Vatican, in a statement announcing the approval of the bank reform plan.

Under the leadership of new head,  hundreds of bank accounts were closed, introduced strict regulations regarding money laundering and opened several investigations regarding suspicious activities.

"The decision represents a strong support of our mission and the difficult work submitted in the last 12 months," the Vatican Bank noted in a statement.