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BSP to finish data collection for credit scoring bid by December

Date Published: 
November 11, 2021
Photo from Philippine News Agency
Photo from Philippine News Agency

MANILA – The Bangko Sentral ng Pilipinas (BSP) aims to complete by December this year the data collection for its Credit Risk Database (CRD) Project, which is part of its bid to establish credit scoring in the country. 
 
In his speech during the virtual 59th Philippine Economic Society annual meeting and conference on Thursday, BSP Governor Benjamin Diokno said the data collection started in December 2020 with the help of the experts from CRD Japan. 
 
“(Upon the completion of data collection in December,) this will then prompt the start of the credit scoring model development in the same month,” he said. 
 
Diokno said three universal and commercial banks (U/KBs) recently joined the program, bringing the pioneer financial institutions that will join the project to 20. 
 
“Development of a concrete framework for CRDs sustainable operation is likewise underway,” he added.
 
The establishment of a credit scoring database for borrowers is among the BSP’s measures to ensure that micro, small and medium enterprises (MSMEs), among others, will have easier access to financing. 
 
Citing results of a survey done last year, Diokno said around 60 percent of MSMEs, which account for around 99 percent of business firms in the country, stopped operations and registered zero sales due to lack of working capital and means to avail relief support. 
 
“Thus, the BSP has set out programs envisioned to encourage credit flow toward these critical sectors and bolster their overall development and competitiveness over the long term,” he said. 
 
Among of these programs are the credit surety fund, a credit enhancement scheme being implemented with the Philippine Guarantee Corporation, the Land Bank of the Philippines that provides up to 80 percent survey cover for loans granted by banks to MSMEs; and the Agri-Agra Law amendment, which is targeted to strengthen development in rural areas by providing holistic approach in addressing financing needs of the broader agricultural financing ecosystem. (PNA)
 

Written By: 
Joann Villanueva
Category: 
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