the Japan International Cooperation Agency (JICA) signed a Record of Discussions with the Government of the Republic of the Philippines on the Project for Establishment of Credit Risk Database (CRD).
This project aims to establish a CRD, which consists of a database of anonymously collected financial statements and default information of companies held by financial institutions, and a statistical scoring model generated from the database. It makes it possible for financial institutions to estimate customer's Probability of Default by using the scoring model, and will enhance the credit risk assessment information of each financial institution. In addition, it is expected to promote risk-based credit that does not rely on collateral.
This will contribute to improving the efficiency of financing for SMEs and strengthening the country's financial system, and will contribute to Sustainable Development Goals (SDGs) Goal 8.
Source: Japan International Cooperation Agency