BSP, IFC Sign MOU to Promote Movable Asset Financing in the Philippines

The Bangko Sentral ng Pilipinas (BSP) and the International Finance Corporation (IFC) have agreed to jointly develop the country’s movable finance market in an effort to improve credit access for micro, small, and medium enterprises (MSMEs) and the agricultural sector. 

Under a memorandum of understanding, signed on 17 March 2025, the BSP and IFC will collaborate to advance the market by promoting movable asset finance (MAF). 

MAF is an innovative lending approach that allows borrowers to secure loans using movable assets, such as inventories, receivables, and equipment.

This approach is designed to benefit borrowers who lack real property to serve as loan collateral, particularly those from the MSME and agricultural sectors.

Set to run until 2027, the partnership between the BSP and IFC will focus on regulatory reform, sector capacity building, and supporting services development.

BSP Governor Eli M. Remolona, Jr. said, “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.”

BSP Deputy Governor Bernadette Romulo-Puyat added that the partnership between the BSP and IFC aligns with 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 a 2022 IFC study, finance involving movable assets in the country remained under 5 percent.

The partnership between the BSP and IFC is meant to complement the law and significantly increase loans secured by movable assets.​​