The Bangko Sentral ng Pilipinas (BSP) and the International Finance Corporation (IFC) have signed a memorandum of understanding (MOU) to promote movable asset financing in the Philippines, aiming to improve credit access for micro, small, and medium enterprises (MSMEs) and the agricultural sector.
The agreement, signed on March 17, 2025, seeks to develop the country’s movable finance market and expand lending options for underserved borrowers.
Movable asset finance (MAF) is a lending model that allows businesses to secure loans using movable assets such as equipment, inventory, and accounts receivable instead of real estate or land.
The approach offers an alternative for borrowers who lack traditional collateral, especially those in the MSME and agriculture sectors.
The BSP and IFC partnership will run through 2027 and will focus on three main pillars: regulatory reform, capacity building, and the development of support services that will enable broader adoption of MAF.
“The BSP looks forward to working with IFC to build a dynamic MAF ecosystem,” said BSP Governor Eli M. Remolona Jr. “With this, MSMEs and agri-enterprises can use their available assets to access financing for their working capital and other needs.”
BSP Deputy Governor Bernadette Romulo-Puyat said the initiative supports the National Strategy for Financial Inclusion 2022–2028, which outlines the country’s vision for inclusive growth and financial resilience.
While the Philippines enacted the Personal Property Security Act (PPSA) in 2018 to formalize the use of movable property as loan collateral, uptake remains limited.
According to a 2022 IFC study, financing secured by movable assets accounted for less than 5% of total lending in the Philippines.
The BSP-IFC partnership is expected to address this gap by encouraging financial institutions to recognize and accept a broader range of asset types as collateral.
The effort will also include technical assistance, education for lenders and borrowers, and improvements in secured transaction systems to help reduce credit barriers for smaller businesses.
By expanding the range of acceptable loan collateral, the initiative aims to unlock access to credit for thousands of enterprises that drive local employment and economic growth.
This collaboration reflects ongoing efforts to enhance financial inclusion in the Philippines, where MSMEs represent over 99% of registered businesses but often struggle to obtain formal financing.
Through improved access to credit, the BSP and IFC hope to empower small businesses to scale operations, invest in innovation, and build long-term financial resilience.
