IGLF forum to help banks reach more mSMEs thru risk-based lending

A forum and workshop on “Risk-based Lending for Small and Medium Enterprises” will be held at the UP Institute for Small-Scale Industries (UP ISSI), Diliman, Quezon City on June 7 to propagate the concept of risk-based lending among banks and other financial institutions and help them adopt it in their business loan programs.

The forum, sub-titled “Invest in the future,”  is a project of the Industrial Guarantee and Loan Fund (IGLF) in collaboration with the Development Bank of the Philippines (DBP), UP ISSI, and Small Enterprises Research and Development Foundation (SERDEF).

Risk-based lending has been described as a form of lending that will help micro, small and medium enterprises gain more access to financing, especially from formal sources. This is because risk-based lending makes use of credit-assessment models that are more focused on the borrowing enterprise itself – its performance and potentials for growth – rather than its capacity to put up collateral.

Studies have shown that the collateral culture has become an impediment to the growth of mSME finance not only in the Philippines but also in other countries, leading to the quest for a more reliable and responsive credit system.

The forum is addressed to executives of rural, thrift, universal, commercial and cooperative banks, micro finance institutions, and business assistance and lending centersr – from their CEOs and board directors to branch and account managers.

Among the topics to be discussed in the one-day forum are best practices in risk-based lending, regulatory environment for risk-based lending, credit risk management and trends in SME lending, SB Corp model in risk-based lending, and SME lending programs and policies of the Department Trade and Industry and the IGLF.

The forum will be replicated in Boracay, Aklan for participants in the Visayas on August 23 and in Davao City for those in Mindanao on October 18.

Inquiries may be addressed to Severina Banaga (Tel. 928 7076 and spbanaga@yahoo.com) or Juli Cardillo (Tel. 928 7076 and jui.cardillo@gmail.com).

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