BSP, JICA Advance Credit Risk Database Project

The Bangko Sentral ng Pilipinas (BSP) and the Japan International Cooperation Agency (JICA) have agreed to proceed with the second phase of their Credit Risk Database (CRD) project, which aims to expand financing access for small and medium enterprises (SMEs).

During a ceremony at the BSP head office in Manila on Dec. 11, 2024, BSP Governor Eli M. Remolona Jr. and JICA Philippines Chief Representative Sakamoto Takema presented the signed “Records of Discussion” for the project’s next phase.

The document formalizes the plan to transition the CRD to permanent operations, explore additional services, and map out the next steps for the initiative.

The CRD generates credit scores that financial institutions can use to evaluate SMEs’ capacity to repay loans. This promotes risk-based lending, reducing reliance on collateral for loan approvals and improving SMEs’ access to finance.

BSP and JICA began building the CRD in 2020. During the first phase, they developed an SME database, a credit-scoring model, and a tool that was deployed to participating financial institutions starting in October 2023.

“As we end Phase 1 and move on to Phase 2 of the CRD project, I know we will sustain the momentum we’ve built,” Governor Remolona said. “Let us continue to work together to help SMEs and improve the quality of life of Filipinos.”

Chief Representative Takema added, “We are witnessing the commencement of the second phase of our CRD project. It reflects the continued trust between BSP and JICA to further develop what has been achieved. Let’s work together for a prosperous and inclusive Philippines with CRD.”

The ceremonial signing was also attended by Nihei Daisuke, minister for economic affairs at the Embassy of Japan.

Financial institutions that joined the initial phase of the project include Land Bank of the Philippines, Development Bank of the Philippines, Security Bank Corp., Rizal Commercial Banking Corp., Philippine Business Bank, and Sterling Bank of Asia Inc., among others.

Additional participants in Phase 2 include the Bank of the Philippine Islands, Metropolitan Bank and Trust Co., Philippine National Bank, Maybank Philippines, and rural banks such as Bangko Kabayan Inc. and Luzon Development Bank.

The CRD project underscores the commitment of BSP and JICA to support SMEs, which are critical drivers of the Philippine economy.