US President Joe Biden announced On Thursday that Washington is nominating former Mastercard CEO Ajay Banga to lead the World Bank, following the announcement by current CEO David Malpass of his intention to step down early.
The development lender has only recently begun accepting candidate nominations for a process that will last until March 29, with the bank stating that female candidates will be “strongly” encouraged.
The World Bank president is typically an American, whereas the International Monetary Fund president is typically European.
Banga, 63, is an Indian-American vice chairman at the private equity firm General Atlantic. He was previously the CEO of Mastercard.
Banga has “vital experience mobilizing public-private resources to address our time’s most pressing challenges, including climate change,” according to Biden in a statement.
Last week, current World Bank President David Malpass announced his resignation nearly a year early, ending a tenure marred by questions about his climate stance. Malpass was nominated to the post by Biden’s predecessor, Donald Trump, in 2019.
Banga’s nomination comes amid a push for development banks to revamp and more effectively address global issues such as environmental issues.
Earlier this year, US Treasury Secretary Janet Yellen stated that lenders’ core models, in which countries borrow to make specific investments to address developmental constraints, are “insufficient to meet the moment.”
The United States is the largest shareholder in the World Bank.
A senior US administration official told reporters, “Ajay has made combating climate change and mobilizing private capital to help power the green transition a priority at Mastercard and General Atlantic.”
“These are the experiences and priorities that will guide and drive his work at the World Bank in the years ahead,” the official said.
Yellen praised Biden’s decision in a separate statement on Thursday.
The World Bank needs a leader at a crucial time in its history, and Banga “has the right leadership and management skills, experience living and working in emerging markets, and financial expertise,” according to Yellen.
She added that his track record of forging partnerships between the public, private, and non-profit sectors will help him “mobilize private capital and press for the reforms required to meet our shared ambitions.”
When asked about the World Bank’s support for female candidates, a US official told reporters that Banga, who was born, raised, and spent a significant portion of his career in emerging market India, had a “personal conviction and excellent track record” of promoting diversity in his work.
