US President Joe Biden on Thursday nominated Indian-American business executive Ajay Banga to become president of the World Bank. Mr Biden lauded Mr Banga’s experience in forging public-private partnerships to address financial inclusion and climate change.

The World Bank on Wednesday had said that it expected to select a new president by early May to replace David Malpass, who had announced his resignation last week after months of controversy over his views on climate change and pressure by Treasury Secretary Janet Yellen for him to adopt “bolder and more imaginative” reforms.

Mr Banga’s nomination by the United States all but assures he will assume a job that oversees billions of dollars of funding as the institution embarks on a major series of reforms to better respond to climate change and other pressing challenges facing developing countries.

“Ajay is uniquely equipped to lead the World Bank at this critical moment in history,” Mr Biden said in a statement, adding:. “He has spent more than three decades building and managing successful, global companies that create jobs and bring investment to developing economies and guiding organisations through periods of fundamental change.”

The World Bank has historically been headed by someone from the United States, its largest shareholder, while a European heads the International Monetary Fund (IMF). But developing countries and emerging markets have pushed to widen those choices.

Raised in India but now a US citizen, Mr Banga, 63, is vice-chair of General Atlantic, a US private equity firm that has invested over $800 million in EV charging solutions, solar power and sustainable farming, and serves as honorary chair of the International Chamber of Commerce.

He had retired in December 2021 after 12 years at the helm of Mastercard, where he had set a target of bringing 1 billion people and 50 million micro and small businesses into the digital economy by 2025 and led work on climate, gender and sustainable agriculture.