The Bangko Sentral ng Pilipinas (BSP) agreed with Japan International Cooperation Agency (JICA) to continue the partnership on Credit Risk Database (CRD) project designed to widen access to financing for small and medium enterprises (SMEs).
BSP Governor Eli 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 in a ceremony at the BSP head office in Manila on Dec. 11, 2024.
The document formalizes the agreement between the BSP and JICA to transition CRD to permanent operations, explore new services and outline the next plan of action for the project.
The CRD generates a credit score that financial institutions can use to assess the capacity of SMEs to pay loans. This broadens access to finance as it promotes risk-based lending, which reduces dependence on collateral for approving loans.
BSP and JICA started building the CRD in 2020. During the project’s first phase, they developed both the SME database and a credit-scoring model and tool. In October 2023, they began deploying the credit-scoring tool to financial institutions participating in the CRD project.
“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,” Remolona said.
Takema said, “we are witnessing the commencement of the second 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,” he said.
