MANILA – The Bangko Sentral ng Pilipinas (BSP) aims to complete by December of this year data collection for its Credit Risk Database (CRD) project, which is part of its offer to establish a rating credit in the country.
In his speech to the 59th Annual Meeting and Virtual Conference of the Philippine Economic Society on Thursday, BSP Governor Benjamin Diokno said data collection began in December 2020 with the help of experts from CRD Japan. .
â(After the completion of data collection in December), this will then trigger the start of development of the credit scoring model in the same month,â he said.
Diokno said that three Universal and Commercial Banks (U / KB) have recently joined the program, bringing to 20 the number of pioneer financial institutions that will join the project.
âThe development of a concrete framework for the sustainable functioning of CRDs is also underway,â he added.
Establishing a credit rating database for borrowers is part of PASB’s measures to ensure that micro, small and medium-sized enterprises (MSMEs), among others, have easier access to finance.
Citing the results of a survey carried out last year, Diokno said that around 60% of MSMEs, which represent around 99% of the country’s businesses, have gone out of business and have not recorded any sales due to lack of working capital and means of receiving emergency aid.
“Thus, the PASB has defined programs envisaged to encourage credit flows to these critical sectors and strengthen their overall development and long-term competitiveness,” he said.
These programs include the Credit Guarantee Fund, a credit enhancement program implemented with the Philippine Guarantee Corporation, the Land Bank of the Philippines that provides up to 80% investigation coverage for loans made. by banks to MSMEs; and the amendment to the Agri-Agra law, which aims to strengthen development in rural areas by proposing a holistic approach to meet the financing needs of the broader agricultural finance ecosystem. (ANP)