BSP, IFC Team Up to Boost Movable Asset Financing for MSMEs, Farmers

The Bangko Sentral ng Pilipinas (BSP) and the International Finance Corporation (IFC), a member of the World Bank Group, have signed a partnership agreement to strengthen the country’s movable asset finance (MAF) market, aiming to expand credit access for micro, small, and medium enterprises (MSMEs) and the agriculture sector.

Signed on March 17, 2025, the memorandum of understanding (MOU) outlines a collaborative effort to promote MAF—a lending model that allows borrowers to use movable assets such as inventory, equipment, and receivables as loan collateral. This approach is especially beneficial for those who lack real estate to secure loans.

The initiative will run until 2027 and focus on regulatory reform, capacity building for stakeholders, and the development of support services to enhance the financing ecosystem.

“We look forward to working with IFC to create a dynamic MAF ecosystem that allows MSMEs and agri-enterprises to access vital financing,” said BSP Governor Eli Remolona Jr.

Deputy Governor Bernadette Romulo-Puyat emphasized that the move aligns with the Philippines’ National Strategy for Financial Inclusion 2022-2028, which promotes inclusive economic growth and financial resilience.

Despite the passage of the Personal Property Security Act, BSP noted that movable asset-backed loans remain underutilized—comprising less than 5% of total finance, according to a 2022 IFC report. This partnership aims to bridge that gap.