Economic development, industrialization and the basic life cycle of businesses within every economy require effective financing and responsible credit. With a few exceptions, many of the smaller pacific island countries and territories are classified as low income economies that rely on external help. Some are still working on implementing appropriate regulatory framework, and financial risk management systems. There are however, various lending institutions in these economies that face material credit, operational, market, and liquidity risks in the absence of public or privately owned credit bureaus or registries. This report provides a review of the credit risk management practicies in the smaller island countries and territories amidst the asymmetric credit information challenges.