The World Bank’s 25-member executive board on Wednesday elected former Mastercard CEO Ajay Banga to a five-year term as president, effective June 2.
The appointment is widely expected to pave the way for the India-born finance and development expert to revamp the lender to tackle climate change and other global crises.
Banga, 63, was nominated for the post by US President Joe Biden in late February, and was the sole contender to replace departing World Bank chief David Malpass, an economist and former US Treasury official during the Trump administration.
The World Bank has been led by an American since its founding at the end of World War Two, while the International Monetary Fund has been led by a European.
Banga, who was born in India and spent his early career there, has been a US citizen since 2007.
Biden congratulated Banga on his “resounding approval” to run the World Bank, Reuters reported.
“Ajay Banga will be a transformative leader, bringing expertise, experience, and innovation to the position of World Bank President,” Biden said.
US Treasury Secretary Janet Yellen said Banga brought the “right leadership and management skills” to the job, and would play a critical role in pushing forward with additional reforms, including by forging partnerships between the public and private sectors and nonprofit groups.
The World Bank, in a statement, said the Board looks forward to working with Banga on the World Bank Group Evolution process, as discussed at the April 2023 Spring Meetings, and on all the World Bank Group’s ambitions and efforts aimed at tackling the toughest development challenges facing developing countries.
Banga will take over at a pivotal time for the anti-poverty lender, which gives out about $100 billion annually.
The US is among nations pushing reforms of multilateral development banks to unlock more climate financing for the developing world.
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