The Bangko Sentral ng Pilipinas (BSP) and the Japan International Cooperation Agency (JICA) have teamed up to launch the Credit Risk Database (CRD) Scoring Model, aimed at improving the creditworthiness assessment of small and medium-sized enterprises (SMEs) in the Philippines.
The scoring model is expected to help financial institutions assess the creditworthiness of SME borrowers, particularly those without credit histories or adequate collateral. Through a data-driven approach, the CRD Scoring Model will provide banks with additional information to better manage credit risk and bridge the funding gap for micro, small, and medium enterprises.
Governor Felipe M. Medalla of BSP expressed gratitude to the Japanese government and JICA for their unwavering support of the development efforts of the Philippines.
Ambassador Kazuhiko highlighted the importance of SME financing to fully harness the country’s economic potential and achieve financial inclusion goals. JICA Chief Representative Takema also expressed a positive outlook on the continuous cooperation between JICA and the Philippines.
The CRD Scoring Model was developed as part of the three-year Technical Cooperation Program between the BSP and JICA. The scoring model is expected to help improve the creditworthiness assessment of SMEs and strengthen the country’s financial system.