To understand the macroeconomic factors influencing default loans, a comprehensive review of existing empirical studies will be conducted. This literature review will identify key variables such as inflation rate, fiscal and monetary policies, credit risk exposure, and their relationships with default loan trends. By synthesizing and analyzing these studies, the research will contribute to a better understanding of the macroeconomic factors associated with default loans in the banking sector of Bangladesh.
Hypotheses Generation:
Based on the findings from the empirical studies and the understanding of the banking sector in Bangladesh, hypotheses will be formulated to test the relationships between various factors and default loan occurrences. These hypotheses will guide the research in exploring the causes of default loans and their implications for the country’s economy.
Econometric Framework:
The research will employ an econometric framework to analyze the collected data and test the formulated hypotheses. Statistical techniques such as regression analysis, correlation analysis, and other relevant econometric methods will be utilized to assess the relationships between variables and determine their significance in explaining default loan occurrences.
Analytical Methodologies:
The data will be analyzed with the appropriate statistical software in order to guarantee the accuracy and dependability of the results. This will be done by subjecting the data to analysis. This study is to use descriptive and inferential statistical methods to investigate the correlation between relationships, various contributing factors, and viable solutions to the problem of defaulted loans in the banking industry of Bangladesh. The study's primary focus is on the country of Bangladesh.