A seasoned banking executive with considerable experience in First Nations finance has been tasked to lead Indigenous Business Australia.

The Federal Government on Friday announced the appointment of David Knights, a senior executive with more than 25 years experience across the banking, superannuation, management consulting and engineering sectors.

Mr Knights, who spent two decades with the National Australia Bank in various executive roles and currently was a partner of Entregar Partners, has also been a non-executive director with Traditional Credit Union since 2009.

TCU is the only Indigenous-owned credit union in Australia, delivering financial services and employment opportunities in remote communities.

His appointment for four years by the board comes at a critical time for Indigenous Business Australia (IBA), which plays a crucial role advancing the economic independence of First Nations people and will oversee a period where the federal government strives to advance Indigenous economic participation amid the renewables transition.

IBA assists the Indigenous business economy through expert business advice, home loans, tailored finance solutions and investment initiatives that empower individuals and businesses.

Indigenous Australians minister Senator Malarndirri McCarthy congratulated Mr Knights on his appointment.

"I am confident Mr Knights, working with the board and executive, will positively contribute to the future of the IBA and its work to enhance economic development opportunities for Aboriginal and Torres Strait Islander people across Australia," she said.

"I look forward to working with him to advance the economic empowerment of First Nations people."