AUDIT COMMITTEE INDEPENDENCE, DIRECTOR OWNERSHIP, AUDIT QUALITY AND NON-PERFORMING LOANS

The rising trend of Non-Performing Loans (NPLs) in the banking sector Bangladesh epitomises a common phenomena loan default that mostly arises from unwillingness to repay tendency borrowers who usually fit into defined higher class society. An appropriate governance and control framework can effectively this growing NPLs, supplemented by culture. In view setting, paper looks for impact audit committee independence, director ownership, external quality, CEO power, bank size NPLs. After identifying two endogenous variables system linear equations, employs generalized method moment (GMM) approach regression analysis. This finds significance quality controlling However, no significant power on lowering Bank Size, measured relative sense, has non-linear recommends existing guidelines BASEL-II accords fail boost up asset controls NPLs ensures capital adequacy. Keywords: Bangladesh; sector; power;