David Malpass says the terms and conditions need to be "more transparent".
China says such loans are made within international rules.
However, sharp increases in interest rates in the US and other major economies over the past year are making loan payments more expensive because many of these loans are made in foreign currencies such as US dollars or euros.
It's a particularly acute problem for developing economies, which can struggle to find the extra cash they need as the relative value of their own currency falls.
US-China Rivalry
Addressing this challenge and its consequences was one of the main reasons for this week's visit by US Vice President Kamala Harris to three African countries, accompanied by major commitments of financial support to Tanzania and Ghana.
There is a growing rivalry with China for influence on the continent, whose bounty of natural resources includes metals such as nickel, crucial for the batteries needed for technologies like electric cars.
In the Ghanaian capital, Accra, Kamala said that "America will be guided not by what we can do for our African partners, but by what we can do with our African partners."
Highlighting a new nickel processing facility in Tanzania, he said the project would supply the United States and other markets through 2026 and would "help tackle the climate crisis, build resilient global supply chains and create new industries and jobs."
This collaborative approach was praised by Malpass, who said competition between the world's two largest economies was "perhaps healthy for developing countries" as it offered different options.
Beijing has become one of the biggest sources of loans for developing economies in recent years. A new study led by the Kiel Institute for the World Economy shows that China lent $185 billion in bailouts to 22 countries between 2016 and 2021.
