Ex-Mastercard CEO Ajay Banga confirmed as World Bank president

Washington — Former Mastercard CEO Ajay Banga was confirmed Wednesday to serve as the 14th president of the World Bank and is set to begin his five-year term at the institution's helm next month.

Banga was nominated to the role by President Joe Biden in February and will succeed David Malpass as president of the World Bank. Malpass was tapped for the role by former President Donald Trump and announced earlier this year he planned to step down roughly one year early. 

Mr. Biden extended congratulations to Banga for his "resounding approval" by the World Bank's board of governors and predicted he would be a "transformative leader."

"Together with World Bank leadership and shareholders, 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," the president said. "Ajay will also be integral in bringing together the public and private sectors, alongside philanthropies, to usher in the fundamental changes in development finance that this moment requires."

Treasury Secretary Janet Yellen said Banga would play a "critical role" in the World Bank's efforts to address global challenges like climate change and praised his record of work across the public and private sectors.

"Ajay understands that the challenges we face — from combatting climate change, pandemics, and fragility to eliminating extreme poverty and promoting shared prosperity — are deeply intertwined," Yellen said in a statement. "He has effectively built a broad global coalition around his vision for the Bank over the course of his candidacy."

The leader of the World Bank has been an American citizen since its founding after World War II, and the candidate put forth by the U.S. is traditionally chosen to helm the bank.

Banga, who was raised in India, will join the World Bank from the private equity firm General Atlantic, where he serves as vice chairman. He worked for more than a decade at Mastercard, as its president and chief executive, and then as its executive chairman. Banga also was chief executive officer of Citigroup's Asia-Pacific region and worked with Nestle in India for 13 years. He has served on the boards of the American Red Cross, Kraft Foods and Dow Inc. 

Banga's selection to replace Malpass comes after the latter came under criticism after he declined to say in September during a New York Times event whether he believed the burning of fossil fuels is causing the planet to warm. Malpass instead declared "I'm not a scientist," a comment that sparked claims he was a climate-change denier.

The World Bank leader sought to clarify his stance, telling CNN International he is "not a denier" and "it's clear" greenhouse gas emissions are coming from manmade sources, including fossil fuels."

"We're working hard to change that," Malpass said.