BSP, IFC ink pact to advance ‘movable’ finance market

The Bangko Sentral ng Pilipinas (BSP) and World Bank Group member International Finance Corp. (IFC) have signed an accord to jointly develop the country’s movable finance market in a bid to improve credit access for micro, small, and medium enterprises (MSMEs) and the agricultural sector.

In a statement on Wednesday, the BSP said it signed a memorandum of understanding (MOU) with IFC last March 17, 2025.

Under the MOU, both the central bank and IFC will collaborate to advance the movable finance market “by promoting movable asset finance (MAF).”

The BSP defined MAF as an “innovative lending approach” that allows borrowers to secure loans using movable assets —inventories, receivables, and equipment.

The central bank said that the MAF approach is designed to benefit borrowers who lack real property to serve as loan collateral, particularly those from the MSME and agricultural sectors.

The partnership between the BSP and IFC is set to run until 2027.

The collaboration will focus on regulatory reform, sector capacity building, and supporting services development.

“The BSP looks forward to working with 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,” said BSP Governor Eli M. Remolona Jr.

BSP Deputy Governor Bernadette Romulo-Puyat added that the partnership between the BSP and IFC aligns with the vision of financial inclusion toward inclusive growth and financial resilience stated in the National Strategy for Financial Inclusion 2022-2028.

While the Philippines has the Personal Property Security Act in place, there is still a need to promote MAF, according to the BSP.

Citing a 2022 IFC study, the central bank said finance involving movable assets in the country remained under 5%.

“The partnership between the BSP and IFC is meant to complement the law and significantly increase loans secured by movable assets,” the BSP said. —VAL, GMA Integrated News