The Bangko Sentral ng Pilipinas (BSP) and the International Finance Corp. (IFC) signed an agreement to promote the use of movable assets for loans, to help more micro, small, and medium enterprises (MSMEs) and farmers get access to credit.
The memorandum of understanding, signed on March 17, 2025, marks the start of a partnership that will run until 2027. It will focus on improving rules, strengthening industry know-how, and developing support services to encourage the use of movable asset financing (MAF).
“We’re working with IFC to grow a healthy MAF ecosystem,” said Bangko Sentral Governor Eli Remolona Jr. “This will allow MSMEs and agri-businesses to tap into financing using the assets they already have.”
Helping smaller businesses and agriculture enterprises
Movable asset financing allows businesses to secure loans using items like goods, receivables, warehouse receipts, and crops, instead of land or buildings. This can be helpful for smaller firms and agricultural enterprises that often don’t own real estate.
The Philippines already has a law in place — called the Personal Property Security Act — that supports this kind of financing. However, it remains underused. A 2022 study by the IFC found that loans backed by movable assets made up less than 5% of total lending.
The BSP and IFC believe this joint effort will help close that gap.
According to Bangko Sentral Deputy Governor Bernadette Romulo-Puyat, this partnership supports BSP’s goal of financial inclusion to make sure more people, especially those in underserved sectors, have access to the financial services they need to grow and recover.