But with the pandemic, we’re optimistic that we can meet this goal as early as December-2022. The BSP is also working with the Japanese Government on the development a Credit Risk Database for MSMEs. This is a comprehensive statistical reference tool for risk-based lending. This will lessen the dependence of banks on collateral, hence increase MSME access to financing.
This may mean that the frequency of financial crises may diminish as financial integration proceeds or it could also imply that the severity of crises, when they occur, could be greater than before. It is therefore important to monitor the increasing inter-linkages between different participants in the financial system.