US President Joe Biden announced his administration's nominee to lead the World Bank on Thursday.

Biden named former Mastercard CEO Ajay Banga as Washington's choice to replace David Malpass — appointed by former US President Donald Trump — who is ending his five-year term a year early.

The World Bank, which aims to reduce global poverty through lending and development policies, had said that women candidates were "strongly" encouraged.

But Biden said the 63-year-old Indian-American had the "critical experience mobilizing public-private resources to tackle the most urgent challenges of our time, including climate change."

The head of the World Bank is traditionally a position held by an American while the International Monetary Fund (IMF) is generally run by a European. But the bank has vowed to take "an open, merit-based and transparent selection process" amid criticism of the monopoly hold on the positions of power.

If picked for the role, Banga would be the first Indian-born head of the bank.

A businessman to help end world poverty

The departure of Malpass — who attracted criticism last year for  appearing to question the science behind the link between burning fossil fuels and global warming — offers Biden the chance to overhaul the powerful financial institution.

There have been increasing calls to make the bank more favorable to poorer nations and to increase efforts to address climate change.

US Treasury Secretary Janet Yellen also supported the nomination of Banga, saying his 30 years of experience running major companies — and currently serving as vice chairman at a private equity firm — "will help him achieve the World Bank's objectives of eliminating extreme poverty and expanding shared prosperity while pursuing the changes needed to effectively evolve the institution."

This, she added, includes meeting "ambitious goals for climate adaptation and emissions reduction."

ab/sms (AP, AFP)