DETERMINING the credit scores and default probabilities of small and medium enterprises (SMEs) will now be easier, ensuring access to finance for more businesses, the Bangko Sentral ng Pilipinas (BSP) said.
BSP teamed up with the Japan International Cooperation Agency for the Credit Risk Database Philippines Web-based Scoring (CRDPh) System.
“It (the platform) aims to help financial institutions (FIs) assess the creditworthiness of small and medium enterprises,” the BSP said in a press release on Friday.
The central bank explained that the online platform “generates credit scores and default probabilities using anonymized financial and non-financial data from participating FIs.”
“This enables faster and more accessible SME loan assessments without the need for standalone software installations,” it said.
By providing an additional tool for approving and pricing SME loans, the CRDPh System addresses the “missing middle” or the businesses that are either “too large for microfinance but too small for traditional commercial banks,” the BSP said.
“Aside from enhancing credit risk management, the system will provide policymakers with benchmark statistics and data to guide SME financing measures,” it added. / PNA