Bangko Sentral, JICA launch credit risk database scoring model

THE Bangko Sentral ng Pilipinas said Tuesday it expects a significant improvement in the access to credit of small businesses following the launch of the Credit Risk Database scoring model in partnership with the Japan International Cooperation Agency.

BSP Governor Felipe Medalla said the scoring model would help banks and other financial institutions better assess the creditworthiness of small and medium enterprise borrowers including those without credit histories or adequate collateral.

He said the scoring model would bridge 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.

Japanese Ambassador Koshikawa Kazuhiko, JICA Philippines chief representative Sakamoto Takema and officers of the 32 participating banks attended the launching ceremony for the CRD scoring model at the BSP on April 25.

Kazuhiko said ensuring that promising SMEs have access to appropriate financing is essential to fully harnessing the Philippines’ economic potential and realizing its goal of financial inclusion.

Among the participating universal and commercial banks are Rizal Commercial Banking Corp., Bank of the Philippine Islands, Metropolitan Bank and Trust Co.,

Philippine National Bank, Security Bank Corp., Maybank Philippines, Asia United Bank, Philippine Bank of Communications, Land Bank of the Philippines and Development Bank of the Philippines.

Others are 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.