Mr. Jiro Tsunoda, senior advisor at the Industrial Development and Public Policy Department of the Japan International Cooperation Agency (JICA), met with Dr. Gilberto Llanto, president of the Philippine Institute for Development Studies (PIDS), on February 11, 2016, to discuss research plans for innovating mi crocredit financing in the country.
The possible research collaboration aims to understand how banks can improve risk management and cater to the borrowing needs of micro and small and medium enterprises (MSME). MSMEs in the Philippines have long been experiencing difficulties in expanding and innovating their products and services due to poor access to credit. One of the initial solutions of policymakers was to introduce mandatory loan quotas to ensure that banks lend to MSMEs. However, this initiative has not worked.
Pending a feasibility study, Mr. Tsunoda and Dr. Llanto have agreed that making general information about credit rating analysis available to everyone is a suitable intervention. Together, JICA and PIDS, with the latter’s experience and expertise in the conduct of impact evaluation studies, training and technical assistance, are planning to develop the necessary analysis and policy advice to engender financial and economic environment of inclusiveness and sustainability in the Philippines.
The possible research collaboration aims to understand how banks can improve risk management and cater to the borrowing needs of micro and small and medium enterprises (MSME). MSMEs in the Philippines have long been experiencing difficulties in expanding and innovating their products and services due to poor access to credit. One of the initial solutions of policymakers was to introduce mandatory loan quotas to ensure that banks lend to MSMEs. However, this initiative has not worked.
Pending a feasibility study, Mr. Tsunoda and Dr. Llanto have agreed that making general information about credit rating analysis available to everyone is a suitable intervention. Together, JICA and PIDS, with the latter’s experience and expertise in the conduct of impact evaluation studies, training and technical assistance, are planning to develop the necessary analysis and policy advice to engender financial and economic environment of inclusiveness and sustainability in the Philippines.
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