The Bangkok Sentral ng Pilipinas (BSP) will create a credit risk database to determine the capacity of small and medium enterprises (SMEs) to fulfill their liabilities. Those with reliable track records will be able to obtain cheaper loans in participating banks. 

“The credit risk database is part of our strategic initiatives to improve the SMEs’ access to finance to support their post-pandemic recovery. The BSP is committed to building a sustainable SME financing ecosystem, which is a key driver of inclusive growth,” says BSP governor Benjamin Diokno.

Firms will have to meet a credit score based on several criteria that will allow banks to price loans. Borrowers with a history of paying loans on time will have access to loans at lower rates compared with those with problematic records who’d have to pay a premium on loans. The proposed database, a joint initiative between BSP and the Japan International Cooperation Agency, will promote financial access among well-managed SMEs.