Takehiko Nakao resigns as ADB chief; Japan likely to nominate Asakawa

ADB chief Takehiko Nakao has announced that he is stepping down from his post and Masatsugu Asakawa is likely to be nominated for the position by Japan.

Asian Development Bank (ADB) President Takehiko Nakao is stepping down from his post and his resignation will be effective from January 16th, 2020, according to official sources. Takehiko Nakao was elected President by ADB’s Board of Governors and assumed office during April 2013.

Japan's government is likely to nominate Masatsugu Asakawa, former Finance Ministry diplomat, to replace Takehiko Nakao for the position of ADB chief, Reuters had reported earlier, citing sources. 

It is worth noting that Japan has always held the top spot of ADB and is the bank's biggest shareholder, along with the United States. This makes Asakawa a strong candidate for the position but there is still a chance that China will also announce its nomination.

Before joining ADB, Takehiko Nakao was the Vice Minister of Finance for International Affairs at the Ministry of Finance of Japan. Prior to that, Nakao has held senior positions in the Ministry of Finance in Japan, which he joined in 1978.

Japan has played a key role in creating the ADB to offer loans to developing Asian economies. Senior Japanese Ministry of Finance officials have thus dominated the post of the ADB president since its creation in 1966. Bank of Japan Governor Haruhiko Kuroda served as ADB president before Nakao.

The ADB faces increasing competition from the Asian Infrastructure Investment Bank (AIIB), a China-sponsored development bank, though the two lenders have said they are complementary partners in a region where demand for infrastructure funding remains huge.

 

(With inputs from Reuters)