BSP, IFC partner to boost MSME access to credit

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) and the International Finance Corp. (IFC) have signed an agreement to jointly promote movable asset financing (MAF) in the Philippines.

The deal aims to improve access to credit for micro, small and medium enterprises (MSMEs) and the agriculture sector.

“The BSP looks forward to working with the IFC to build a dynamic MAF ecosystem. With this, MSMEs and agri-enterprises can use their available assets to access financing for their working capital and other needs,” BSP Governor Eli Remolona Jr. said.

Under the memorandum of understanding, the BSP and IFC will work together until 2027 to develop the country’s movable finance market.

The initiative is expected to help borrowers who lack traditional collateral, such as land or buildings, by allowing them to use movable assets like inventory, accounts receivable, and equipment to secure loans.

The partnership will focus on key areas such as regulatory reform, sector capacity building and development of supporting services to make movable asset financing more accessible and effective.

BSP Deputy Governor Bernadette Romulo-Puyat said the initiative aligns with the goals of the National Strategy for Financial Inclusion 2022–2028, particularly in promoting inclusive growth and building financial resilience.

Despite the enactment of the Personal Property Security Act, a 2022 study by the IFC showed that loans secured by movable assets remain below five percent in the Philippines.

The BSP-IFC collaboration seeks to change that by raising awareness and enhancing the infrastructure for movable finance.

By complementing existing laws and addressing current gaps, the partnership is seen as a step forward in strengthening the financial ecosystem for underserved sectors.

The agreement is part of ongoing efforts to broaden credit access and support economic growth through innovative financing models.