TIMES.KY

Cayman Islands, Caribbeanand International News
Thursday, Mar 30, 2023

US to nominate ex-Mastercard CEO Banga for World Bank president

US to nominate ex-Mastercard CEO Banga for World Bank president

President Joe Biden will nominate former Mastercard Chief Executive Officer Ajay Banga in a surprise pick to be the next president of the World Bank as Washington pushes the lender to expand its financial firepower and confront global issues such as climate change and public health.
Banga “has spent more than three decades building and managing successful, global companies that create jobs and bring investment to developing economies, and guiding organizations through periods of fundamental change, Biden said in a statement Thursday.

The 63-year-old currently serves as vice chairman at US investment firm General Atlantic LP. Before that, he spent a decade as president and CEO of Mastercard. He also held various positions at Citigroup Inc., including as CEO of the Asia-Pacific region.

While the official nomination process to replace Malpass opened earlier Thursday, and a final selection isn’t expected until early May, Washington’s candidate has traditionally taken the top spot at the World Bank, where the US is the largest shareholder. Current President David Malpass, who was nominated by President Donald Trump, last week unexpectedly announced that he plans to leave by the end of June.

The nomination comes at a time when the World Bank and its twin Bretton Woods institution the International Monetary Fund facing growing demand for their assistance, with 60 percent of low-income nations at or near distress, with countries owing their creditors hundreds of billions of dollars. It also comes as Treasury Secretary Janet Yellen is pushing an evolution of the development lender from its traditional focus on country-specific lending to focus on global goods like fighting climate change and pandemics.

Raised in India, Banga has “a unique perspective on the opportunities and challenges facing developing countries and how the World Bank can deliver on its ambitious agenda to reduce poverty and expand prosperity,” Biden said.

Yet he wasn’t among a list mentioned by analysts in recent days, which included Samantha Power, head of the US Agency for International Development; and Ngozi Okonjo-Iweala, the current head of the World Trade Organization, a dual Nigeria-US citizen. The World Bank board said Wednesday said that it would strongly encourage women nominees.

Banga’s nomination comes with Yellen in India for discussions among Group of 20 finance ministry and central bank leaders gathering this week in Bengaluru, India.

Regional initiatives

The former Mastercard chief has advocated greater use of green bonds to drive climate finance into developing countries. And he’s highlighted the challenge of financing climate-friendly projects in developing countries with high debt loads.

Banga has co-led the Partnership for Central America, an initiative launched by Vice President Kamala Harris to marshal private-sector support for the region aimed at creating more economic activity and jobs, with contributions of more than $4.2 billion across about 50 companies and organizations.

The Biden administration is confident that Banga will have a strong commitment to gender equality and inclusion, and that his experience growing up and spending the early part of his career in India will help give him a different perspective than his predecessors, a senior administration official told reporters.

If appointed by the executive board, Banga would follow the early departure of David Malpass, who was tapped in 2019 by then-President Donald Trump and seen by critics as unfriendly to Biden and Yellen’s climate priorities.

The bank’s next president will be tasked with reforming the nearly 80-year-old institution, a process spurred along by a Group of 20 review released last year and promoted by Yellen.

Among other recommendations, the bank is urged to tackle global and transnational issues, particularly climate change, and expand its so-called capital adequacy, allowing it to share more funds and take on more risk, all while continuing its traditional role of poverty reduction and project finance.

Any effort, however, will need to be balanced against preserving the bank’s triple-A credit rating and preferred creditor status, which allows it to borrow cheaply and lend at below-market rates.

Malpass, whose term was set to run through 2024, came under scrutiny in September after appearing to dodge questions over the man-made causes of climate change, raising calls for his replacement and for multilateral banks to stop funding fossil-fuel energy projects.

The bank’s executive board said Wednesday that it will accept nominations through March 29, and then decide on a shortlist of up to three candidates and conduct formal interviews.

Yellen earlier this month called on the bank to implement changes by the time shareholders meet for its so-called Spring Meetings this April in Washington, and asked it to kick off a second phase of reforms by the time shareholders meet for its annual meetings in October.
Newsletter

Related Articles

TIMES.KY
Close
0:00
0:00
China and Brazil have signed a new deal that will allow them to trade in their own currencies, bypassing the US dollar as an intermediary
Elon Musk and Others Call for Pause on A.I., Citing ‘Profound Risks to Society’
Nashville style execution
“We've had evidence prior to the pandemic that masks were largely ineffective at preventing community transmission of influenza “
Former Starbucks CEO Howard Schultz:
Former Starbucks CEO Howard Schultz rejects being labeled a "billionaire"
Jamie Dimon is being deposed over JPMorgan Chase role in Epstein lawsuits
Brand new security footage has just been released to the public showing the Active shooter Audrey Elizabeth Hale drove to Covenant Church School in her Honda Fit this morning, parked, and shot her way into the building
AMERICA, 2023
U.S. charges FTX's Bankman-Fried with paying $40 million bribe
Fallen 'Crypto King' Who Owes Millions to Investors Was Kidnapped and Tortured
Regulators blame social media for SVB's rapid collapse: 'Complete game changer'
AOC explains why she opposes banning TikTok
UK: Humza Yousaf replaces Nicola Sturgeon as SNP leader and first minister in Scotland
In a dramatic U-turn against His Government: Judicial Reform Legislation Must Be Halted, Says Israeli Defense Minister Yoav Gallant
Gordon Moore, a co-founder of Intel Corporation, died at 94
Powell: Silicon Valley Bank was an 'outlier'
Donald Trump arrested – Twitter goes wild with doctored pictures
NYPD is setting up barricades outside Manhattan Criminal Court ahead of Trump arrest.
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Home Secretary Suella Braverman tours potential migrant housing in Rwanda as asylum deal remains mired in legal challenges
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
Jeremy Hunt insists his Budget will get young parents and over-50s back into work
If this was in Tehran, Moscow or Hong Kong
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
Mexican President Claims Mexico is Safer than the U.S.
A brief banking situation report
Lady bites police officer and gets instantly reaction
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
BBC Director General, Tim Davie, has apologized, but not resigned, yet, following the disruption of sports programmes over the weekend
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Senator Tom Cotton: If the Mexican Government Won’t Stop Cartels from Killing Americans, Then U.S. Government Should
Banking regulators close SVB, the largest bank failure since the financial crisis
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Don Lemon, a CNN anchor, has provided a list of five areas that he believes the black community needs to address.
×