The banking sector should go through holistic reforms to strengthen the country's financial base in order to become an upper middle-income nation by 2031, Asian Development Bank's Country Director Edimon Ginting said.

The South Asian country also needs to develop human capital and expand the role of private sector, he said.

Ginting spoke at the luncheon meeting of the American Chamber of Commerce in Bangladesh (AmCham).

Comprehensive and holistic reforms in the banking sector, including a resolution mechanism for non-performing loans, are necessary, he said.

He also suggested for stronger policies and strengthening governance and regulatory oversight of banks and other financial institutions.

The meeting took place at the Westin Dhaka while Syed Ershad Ahmed, president of AmCham, and Syed Mohammad Kamal, vice president, also spoke.