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This study examines the effects of Mobile Financial Services (MFS) on the growth and composition of bank deposits in Bangladesh over the period 2015-2024 based on bank-level panel data for 26 commercial banks. Using Fixed Effects (FE), Random Effects (RE), and Generalized Least Squares (GLS) estimation and controlling for COVID-19 dummy, the study finds that MFS transaction volume has a negative and statistically significant effect on deposit growth. This indicates that rising mobile financial activity slows the pace at which banks accumulate deposits. However, MFS positively and significantly affects both current and savings deposit levels, consistent with the financial inclusion channel through which mobile platforms channel funds into the formal banking system. The effect on total deposits and fixed deposits is statistically insignificant, indicating no direct substitution at the aggregate or long-term deposit level. Bank size and loan-to-deposit ratio are the most consistent determinants across all models. Non-performing loans negatively affect depositor confidence. The COVID-19 pandemic dampened deposit growth and total deposit accumulation but exerted limited influence on current and savings deposit levels. These findings suggest that MFS and traditional banking are complementary rather than substitutive, and that well-designed policy interventions can harness MFS-driven financial inclusion to strengthen rather than undermine the deposit base of commercial banks in Bangladesh.

In Bangladesh, women’s participation in small businesses is rapidly increasing. Although the lack of capital appears to be a significant barrier, banks play an important role in assisting women in obtaining small business loans. This study examines whether foreign banks operating in Bangladesh facilitate access to financing for women entrepreneurs. Using primary data collected from 100 women-owned small businesses in Dhaka, this study employs probit regression models to estimate the likelihood of obtaining small business loans from foreign banks. The results indicate that the accessibility of credit by women entrepreneurs is much less when they apply to foreign banks. The estimated marginal effects convey that the likelihood of securing financing on application to a foreign bank is expected to be lower by about 52 percentage points than domestic banks. The findings also reveal the significance of firm performance, managerial traits, and bank-firm relationships in determining access to credit. Overall, the findings suggest that foreign banks contribute only marginally to small business financing for women entrepreneurs in Bangladesh, implying the need for more targeted policy interventions.