Japan’s new Ambassador to the Philippines, Kitagawa Katsuro, paid a courtesy call on Bangko Sentral ng Pilipinas (BSP) Governor Eli Remolona Jr. on 9 November.

During the meeting, the two highlighted the Credit Risk Database (CRD) Philippines, the Embassy of Japan said.

In the ambassador’s introductory meeting, the two discussed the Philippine economy and regional financial developments.

Kitagawa stressed the importance of a stable and resilient financial system to support growth and investment. He also highlighted the value of continued collaboration with the BSP.

Lending Based on Risk, Not Collateral

The BSP and the Japan International Cooperation Agency (JICA) began building the CRD in 2020.

The Philippines became the first country outside Japan to adopt the model, BusinessMirror reported.

The database holds anonymised financial, non-financial and loan performance data on small and medium enterprises (SMEs), supplied by 33 pioneer financial institutions.

Lenders can use it to generate credit scores and estimate how likely an SME borrower is to default.

The aim is to encourage risk-based lending, so banks rely less on collateral that many small businesses can’t provide.

Because the data is anonymised, the CRD doesn’t show the credit history of individual borrowers, unlike credit bureaus.

Taking the Database Online

In July 2025, the BSP and JICA launched the CRDPh System, a web-based scoring platform that lets lenders assess SME borrowers without installing separate software.

The BSP has said the system will also give policymakers benchmark data to guide SME financing measures.

Featured image: Edited by Fintech News Philippines based on an image by the Embassy of Japan in the Philippines via Facebook.