The Executive Directors of the World Bank selected Ajay Banga as President of the World Bank on 3rd May, 2023 for a five-year term beginning June 2, 2023. Banga, an India-born finance and development expert revamp the lender to tackle climate change and other global crises. He replaces David Malpass, who was criticised for his stance on climate change and will step down nearly a year early. Malpass’s last day at the bank will be June 1.

Banga’s election came after World Bank board members interviewed him for four hours. Ajay Banga is a co-founder of The Cyber Readiness Institute and was Vice Chair of the Economic Club of New York. He was awarded the Foreign Policy Association Medal in 2012, the Padma Shri Award by the President of India in 2016, the Ellis Island Medal of Honor and the Business Council for International Understanding’s Global Leadership Award in 2019, and the Distinguished Friends of Singapore Public Service Star in 2021. Biden congratulated Banga on his “resounding approval” to run the World Bank, which he described as “one of humanity’s most critical institutions to reduce poverty and expand prosperity around the globe.”

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.