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MANILA (UPDATE) - The Bangko Sentral ng Pilipinas is studying a credit rating model that is not based on collateral for micro, small and medium enterprises, Governor Benjamin Diokno said Friday.

The BSP is working with the Japan International Cooperation Agency (JICA) to gather data and to build a model that will help banks push more loans to businesses, Diokno told ANC.

"The project for small and medium enterprises will provide banks with tools that support risk-based lending...away from collateral," the governor said.

"Once completed, credit rating will not be based on collateral but on some data that will be gathered," he added.

Diokno said data gathering is expected to last until 2021 before a model can be established.

At least 18 banks have committed to participate in the project by helping provide data to build the credit risk database, he said. (Editor's note: A previous version of this story counted 187 banks. We regret the error.)

Other banks are also encouraged to join the project.

Liquidity remains sufficient and money supply is "robust," Diokno said.

The Christmas season and the cap on credit card interest rate at 2 percent per month could buoy spending this Yuletide season, Diokno said.

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