Landed property market information management and access to finance

Purpose - There is a longstanding argument that landed property market information management via land registration guarantees accessibility to loans from financial institutions for investment and wealth creation in developing economies. Thus, land registration has been prescribed as the solution to the problem of poverty and underdevelopment. The purpose of this paper is to critically examine the link that exists between land registration and access to investment loans from banks. Design/methodology/approach - The study employed the qualitative research approach using empirical data from Ghana. Banks constituted the survey participants, and data were collected by administering a mainly open- ended questionnaire to loans officers of 18 banks. The data was coded with the aid of Nvivo for analysis. Findings - It has been established that: financial capability of potential mortgagors is the main criterion used by banks to grant investment loans; and land registration is not a prerequisite in mortgage transactions - it is a post-requirement. These empirical findings are corroborated by the evidence adduced from a critical analysis of literature on the land registration system of a Western nation such as Britain. Practical implications - To address the problem of poverty requires the implementation of policies and programmes that would empower the poor financially on a sustainable basis. Land registration per se cannot "unlock" investment capital. Originality/value - Studies that have investigated the link between land registration and access to formal credit tend to focus on the demand side of the mortgage market. This paper, however, concentrates on the supply side by examining the prerequisites for investment loan applications. Such a study in Ghana is notably non-existent and this is the first of its kind.