BSP, JICA launch scoring model to improve credit access for small businesses

The Bangko Sentral ng Pilipinas (BSP) and the Japan International Cooperation Agency (JICA) jointly launched the Credit Risk Database (CRD) Scoring Model to help financial institutions better assess the creditworthiness of small and medium enterprise (SME) borrowers, including those without credit histories or adequate collateral.

BSP Governor Felipe M. Medalla said the CRD Scoring Model supports two objectives: bridging the funding gap for micro, small and medium enterprises while enhancing the credit risk management of financial institutions using a data-driven approach.  The scoring model, the key output of the three-year Technical Cooperation Program between the BSP and JICA, provides additional information for banks to assess the creditworthiness of MSMEs.

The launching ceremony, held at the BSP on 25 April, was attended by Japanese Ambassador Koshikawa Kazuhiko, JICA Philippines Chief Representative Sakamoto Takema, and officers of the 32 participating banks that voluntarily provided the data to build the CRD.

Ambassador Kazuhiko said ensuring that promising SMEs having access to appropriate financing is essential to fully harness the Philippines’ economic potential and realize its goal of financial inclusion.

JICA Chief Representative Takema declared: “Our positive stance on JICA’s continuous cooperation is grounded on our robust partnership and mutual trust to address the Philippine government’s priorities.”

Governor Medalla thanked the government of Japan and JICA for its unwavering support to development efforts of the Philippines.

The banks that participated in the CRD project include Rizal Commercial Banking Corporation, Bank of the Philippine Islands, Metropolitan Bank and Trust Company, Philippine National Bank, Security Bank Corporation, Maybank Philippines, Asia United Bank, Philippine Bank of Communications, Land Bank of the Philippines, Development Bank of the Philippines, Philippine Business Bank, Sterling Bank of Asia, China Bank Savings, Malayan Savings Bank, Philippine Savings Bank, UCPB Savings Bank, 1st Valley Bank, Bangko Kabayan, Queen City Development Bank, Wealth Development Bank, Sun Savings Bank, AllBank, CARD SME Bank, First Consolidated Bank, Luzon Development Bank, Camalig Bank, Rural Bank of Paracale (Camarines Norte), Rural Bank of Pilar (Sorsogon), Rural Bank of San Mateo (Isabela), BOF, Inc., Lipa Bank, and Bangko ng Kabuhayan.

Representatives from the Department of Trade and Industry, Bureau of the Treasury, Securities and Exchange Commission, Bankers Association of the Philippines, Chamber of Thrift Banks, and Rural Bankers Association of the Philippines were also present at the launch.