Mastercard Former CEO Ajay Banga Named As New President Of World bank

The World Bank's board of governors elected former Mastercard CEO Ajay Banga to a five-year term as president on Wednesday (May 3), ushering in an Indian-born finance and development expert to revamp the lender's response to climate change and other global crises.

Banga, 63, was nominated for the position in late February by US President Joe Biden and was the sole candidate to replace departing World Bank chief David Malpass, an economist and former US Treasury official who served in the Trump administration. On June 2, he begins his new job.

Banga was elected after a four-hour interview with World Bank board members on Monday. Malpass will leave the bank on June 1. Instead of the usual consensus-based process, the decision was made by a vote of 24 of the board's members, with Russia abstaining, according to a source familiar with the process.

Biden congratulated Banga on receiving "resounding approval" to lead the World Bank, which he called "one of humanity's most critical institutions for reducing poverty and expanding prosperity around the world."

"Ajay Banga will be a transformative leader, bringing expertise, experience, and innovation to the position of World Bank President," said Vice President Joe Biden. "He will help steer the institution as it evolves and expands to address global challenges that directly affect its core mission of poverty reduction - including climate change."

Banga, according to Treasury Secretary Janet Yellen, has the "right leadership and management skills" for the job and will play a critical role in pushing forward with additional reforms, including forging partnerships between the public and private sectors and nonprofit groups.

"Ajay recognises that the challenges we face are inextricably linked, from combating climate change, pandemics, and fragility to eliminating extreme poverty and promoting shared prosperity." Over the course of his candidature, he has effectively built a broad global coalition around his vision for the Bank," Yellen said in a statement.