Last month, the Indian-born American was nominated for the post by US President Joe Biden.
Banga will replace David Malpass, who unexpectedly announced his resignation in February.
Banga was the only candidate and will serve a five-year term after taking over on June 2.
Until recently, Banga was the vice president of the financial investment firm “General Atlantic”.
His first big challenge is likely to be the overall reform of the WB, which the global body is already trying to implement.
Biden congratulated Bang, saying he would help steer the WB in the right direction.
The new WB chief will place a strong emphasis on climate change and play an important role in bringing together the public and private sectors to implement the necessary “fundamental changes in development financing,” Biden said.
