The Bangko Sentral ng Pilipinas (BSP) and its partner the Japan International Cooperation Agency (JICA) have agreed to make permanent a jointly crafted program designed to facilitate ease of access to credit among small and medium enterprises (SME).
This relates to the credit scoring tool that the partners have developed together since 2020, making it possible for financial institutions to assess the capacity of SMEs to pay loans, and by this measure encourage risk-based lending that does away with collateral as basis for such loans.
The partners have been building the Credit Risk Database (CRD) and tool for more than three years and decided to make the program permanent, explore new services and determine the next plan of action for the program.
“As we end Phase 1 and move on to Phase 2 of the CRD project, I know we will all sustain the momentum we’ve built. Let us continue to work together to help SMEs and improve the quality of life of Filipinos,” BSP governor Eli Remolona Jr. said.
In a ceremony at the BSP head office in Manila on 11 December 2024, BSP Governor Eli M. Remolona, Jr. and Chief Representative of JICA Philippines Office Sakamoto Takema presented the signed ‘Records of Discussion’ for the second phase of the CRD project.
Chief representative Takema, meanwhile, said, “We are witnessing the commencement of the 2nd phase of our CRD project. It is instrumental to the [project’s overall] success and [reflects the] continued trust between BSP and JICA to further develop what has been achieved through the 1st phase of the project. Let’s continue to work together for a prosperous and inclusive development of the Philippines with CRD.”
The ceremonial signing was witnessed by Minister of Economic Affairs, NIHEI Daisuke, of the Embassy of Japan.
The financial institutions that participated early in the project are Land Bank of the Philippines, Development Bank of the Philippines, Security Bank Corporation, Rizal Commercial Banking Corporation, Philippine Business Bank, Sterling Bank of Asia, Inc. (A Savings Bank), China Bank Savings, Inc., Malayan Bank Savings and Mortgage Bank, Inc., Philippine Savings Bank, UCPB Savings Bank, Inc., Queen City Development Bank, Inc., Wealth Development Bank Corporation, Sun Savings Bank, Inc., AllBank (A Thrift Bank), CARD SME Bank, Inc., A Thrift Bank, First Consolidated Bank, Inc. (A Private Development Bank), and Small Business Corporation.
Additional participating banks include the Bank of the Philippine Islands, Metropolitan Bank and Trust Company, Philippine National Bank, Maybank Philippines, Asia United Bank, Philippine Bank of Communications, 1st Valley Bank, Inc. (A Development Bank), Bangko Kabayan, Inc. (A Private Development Bank), Luzon Development Bank, Camalig Bank, Inc. (A Rural Bank), Rural Bank of Paracale (Camarines Norte), Inc., Rural Bank of Pilar (Sorsogon), Inc., Rural Bank of San Mateo (Isabela), Inc., BOF Inc. (A Rural Bank), Lipa Bank, Inc. (A Rural Bank), and Bangko ng Kabuhayan (A Rural Bank), Inc.
