The widespread misuse of Vatican finances is an ideal lesson for Chinese family businesses. Vatican's style of functioning can be compared with the organizational structure of a family business.

Experts suggest the corporate governance, power-sharing and property rights are key essential factors for sustaining business for future generations.

The two books have been released highlighting the discrepancies in Vatican finances management. Vatican Pension Fund still has a huge deficit. There's an enormous discrepancy between the actual value of Vatican's real estate holdings and what's shown in the balance sheet.

Vatican Pension Fund has €800-million deficit. The real estate holdings of Vatican are estimated to be €2.7 billion. Italian journalists revealed misuse of Vatican finances in two books published in November 2015.

The financial misdeeds in any system including Vatican finance or a Chinese family business, make it important that transparent system is the need of the hour.

According to a report published by Forbes, Chinese family businesses can learn more from experiences of Vatican. The Vatican and family businesses share 'three circle' governance structure.

Harvard Business School Professors Renato Tagiuri and John A Davis have developed the three circle governance concept. As this concept creates several competing interests, without proper oversight, this structure makes them vulnerable to corruption. A non-family business has two circle structure involving shareholders and managers only.

The spokesman at Vatican denounced the leak of a private letter to Pope Francis by conservative cardinals, who complained about how his big family meeting was being run. The letter was published by an Italian journalist and it named 13 cardinals who signed the letter. 

Business Insider reports that the spokesman, the Rev. Federico Lombardi, sought to conclude the ongoing controversy that's roiling Francis' synod on the family.

Vatican's Finance Manager Cardinal George Pell has admitted his role in initiating conservatives to bring complaints highlighting the lack of openness in the synod. 

In two circle system, one can be a shareholder or a manager or among the small group, where two circles overlap, which can be compared with managers who hold shares as part of an equity incentive scheme.

Generally insiders manipulate assets for personal gain and misappropriation of funds, as stated by the latest two books 'Merchants in the Temple' and 'Avarice.' Gianluigi Nuzzi authored 'Merchants in the Temple' and 'Avarice' is written by Emiliano Fittipaldi.

Some time ago, The Vatican had released financial statements for 2014 as reported by The Wall Street Journal (WSJ).

These reports reveal over €1 billion in previously off the books assets and showing improved returns on investments over 2013. Cardinal George Pell said the statements comprising most accurate to date of the financial situation.

The Vatican has two main entities - the Holy See and the government of Vatican City State. The Holy See is the central administration of the worldwide Roman Catholic Church. The Vatican City State is spread over 108-acre sovereign territory and residence of Pope.

Pope Benedict had begun a campaign against corruption and it was continued by Pope Francis. The Popes called for transparent governance system for Church's financial operations. The Vatican Bank comes under Church's financial system. Earlier, Vatican Bank had a reputation for tax evasion and money laundering. 
The extensive reforms have been implemented by involving professional finance and management experts. International accounting standards have been adopted by Vatican Bank. The restructuring the organization and staff at Vatican Bank is aimed at bringing transparency in the financial management.