BSP, CDA Highlight Credit Surety Fund Success Nationwide

The Bangko Sentral ng Pilipinas (BSP) and the Cooperative Development Authority (CDA) have launched a forum series to promote best practices in the Credit Surety Fund (CSF) program, highlighting its role in enabling small businesses to access formal credit.

Dubbed the “Credit Surety Fund Spotlight Forum Series,” the initiative showcases success stories from local government units (LGUs), cooperatives, and banks that have contributed to or benefited from CSFs.

The series debuted on June 3 with the Nueva Vizcaya Credit Surety Fund Cooperative (NVCSF), a two-time awardee of the CDA Gawad Parangal as the “Most Outstanding CSF Cooperative” in 2023 and 2024.

Since NVCSF’s launch in 2020, banks have disbursed over PHP 509 million in loans to its members, demonstrating the impact of CSFs in improving loan access for micro, small, and medium enterprises (MSMEs).

“This program helped a lot of our MSMEs in the province. It is one of the vital components that served as backbone of our economy,” said Nueva Vizcaya Governor Jose V. Gambito in a recorded message.

A CSF serves as a loan guaranty, allowing MSMEs and cooperative members to borrow without traditional collateral, backed by pooled contributions from cooperatives, NGOs, LGUs, and government financial institutions like the Development Bank of the Philippines and Land Bank of the Philippines.

BSP Managing Director Charina B. De Vera-Yap emphasized the importance of cooperative-led development, stating, “We look forward to hearing from other CSF cooperatives. You help shape the future of the CSF program and inspire others to follow your lead.”

CDA Chairperson Alexander B. Raquepo described the CSF as “a bridge that connects cooperatives and MSMEs to formal lending institutions.”

Roughly 200 participants, including officers from CDA, NVCSF, and other cooperatives, joined the hybrid event either on-site or online.

As of June 2025, 46 CSF cooperatives have been registered nationwide under CDA oversight, with the BSP continuing to lead advocacy, training, and development efforts.

Established in 2008, the CSF program addresses one of the biggest barriers facing MSMEs—lack of collateral—and encourages inclusive banking by mobilizing local capital and community participation.

By empowering local enterprises, the CSF helps sustain grassroots economies, generates employment, and strengthens rural development.

With increasing interest from both public and private sectors, the BSP and CDA plan to expand the forum series to encourage more regions to adopt the model.