Former CEO of Mastercard is US candidate for the World Bank – 02/23/2023 – Market

US President Joe Biden has proposed Indian-American Ajay Banga, 63, former CEO of Mastercard, to head the World Bank, the White House announced on Thursday (23).

According to an official statement, Banga has the experience to mobilize public and private resources to face the most urgent challenges of our time, including global warming, days after the current president of the institution, David Malpass, announced his resignation.

The candidate was born and raised in India, where he finished his studies before starting his professional career in companies in the agri-food sector, such as Nestlé and PepsiCo, in the late 20th century, and then moving into the financial sector. He developed the microfinance strategy for US bank Citigroup between 2005 and 2009.

In 2009, he was Director of Operations at Mastercard, becoming general director a year later, and CEO of the group, until the end of 2021.

Today, he works as an executive at the American capital fund General Atlantic and chairs the board of directors of Holding Exor, of the Agnelli family, the Italian dynasty that created the empire of the Fiat automobile group.

The World Bank accepts applications until March 29 and has already highlighted that it encourages the presentation of candidates.

Support for Banga’s candidacy comes at a time when changes are being asked for development banks to address global problems, such as the environment.

The secretary of the US Treasury, Janet Yellen, considers that the model of this type of creditor, which consists of borrowing countries to make specific investments, is “insufficient”.

The United States is the main shareholder of the World Bank. By tradition, its president is usually American, while a European heads the IMF (International Monetary Fund). A distribution of responsibilities criticized for years by countries like Brazil, China, India and Russia, which want to have more weight in these international institutions.

Speaking to the press, a US government official said that “at Mastercard and General Atlantic, Ajay made the fight against climate change and the mobilization of private capital a priority to drive the green transition.”

“These are experiences and priorities that will guide and stimulate your work in the coming years at the World Bank,” said this source.

Yellen celebrated her candidacy announcement. Banga “has the right leadership and management skills, the experience of living and working in emerging markets and the financial expertise to lead the World Bank at a critical moment in its history,” said the secretary.

In Yellen’s opinion, his experience in bringing together public and private sector and not-for-profit organizations will help him to mobilize capital and push for necessary reforms.

When asked about the World Bank’s decision to promote women’s candidacies, an American official told journalists that Banga has a personal conviction and an excellent track record in promoting diversity.