The Doing Business report follows a robust methodology that is relevant, appropriate and allows for global comparability. The Doing Business Getting Credit indicator covers two aspects of access to finance—the strength of credit reporting systems and the effectiveness of collateral and bankruptcy laws in facilitating lending. The credit reporting sub-indicator also measures the coverage, scope and accessibility of credit information available through credit reporting service providers such as credit bureaus or credit registries.
Credit bureaus and registries are essential elements of the financial infrastructure that helps address the challenge of providing access to financial services, including credit. By sharing credit information, they help to reduce information asymmetries, increase access to credit for small firms, lower interest rates, improve borrower discipline and support bank supervision and credit risk monitoring.
In the case of the Philippines, the Bankers Association of the Philippines (BAP) Credit Bureau has been included in the analysis of Doing Business for the past few years. While we are aware of the presence of other credit reporting service providers in the country, the BAP bureau fits with the parameters of the Doing Business methodology.
Every year, during the start of a new data collection cycle, the Doing Business team assesses relevant in-country changes. This year, the Doing Business team had the opportunity to visit the Philippines to verify the data and their accuracy on the ground. The data used for the report are received directly from the credit reporting service providers and published as such. Doing Business will continue to monitor the credit information system in the Philippines, evaluating the status of credit reporting service providers in the country based on a rigorous application of the methodology.