Signalling Creditworthiness
Land Titles, Banking Practices, and Formal Credit In Indonesia
Bibliographic Data
| ID | 8415808 |
|---|---|
| Authors | Paul Castañeda Dower (0000-0001-5902-6799, New Economic School), Elizabeth Potamites (Mathematica Policy Research) |
| Year | 2014 |
| Volume | 50 |
| Issue | 3 |
| Pages | 435-459 |
| Publication date | 2014-09-02 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Bulletin of Indonesian Economic Studies (JOURNAL) |
| Journal identifiers | ISSN: 0007-4918 • E-ISSN: 1472-7234 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/00074918.2014.980376 |
| OpenAlex | W2051615488 |
| Language | EN |
| Citations received | 6 |
| References cited | 18 |
Many land titling programs worldwide have produced lacklustre results in terms of achieving access to credit for the poor. This may reflect insufficient emphasis on local banking practices. Bankers commonly seek to ensure repayment by using methods other than securing collateral, such as targeting borrower characteristics that, on average, improve repayment rates. Formal land titles can signal these important characteristics to the bank. Using a household survey from Indonesia, we provide evidence that formal land titles have a positive and significant effect on access to credit and that at least part of this effect is best interpreted as an improvement in information flows. These results stand in contrast to the prevailing notion that land titles function only as collateral. Analysts who neglect local banking practices may misinterpret the observed effect of systematic land titling programs on credit access because these programs tend to reduce the signalling value of formal land titles
Access to Finance · Agriculture · Business · Collateral · Function (biology) · Geography · Land tenure · Land titling · Neglect · Value (mathematics) · Accounting · Computer Science · Finance · Land Rights and Reforms · Microfinance and Financial Inclusion · Urban and Rural Development Challenges
Land and Development in Indonesia
Institutional work
Credit Access and Household Income
Institutional determinants of large land-based investments’ performance in Zambia
Understanding Local Peoples’ Deforestation Decisions in Gunung Leuser National Park, Indonesia
Expanding tenure horizons in food policy research
Getting Institutions “Right” for Whom? Credit Constraints and the Impact of Property Rights on the Quantity and Composition of Investment
The Microfinance Promise
Property rights for the poor
The Evolution of the World Bank's Land Policy
Misteri i Kapitalit
The Impact of “Market-Friendly” Reforms on Credit and Land Markets in Honduras and Nicaragua
Microfinance Success Amidst Macroeconomic Failure
An empirical investigation of rationing constraints in rural credit markets in India
Access to Credit in the Developing World
The Promise and the Peril of Microfinance Institutions in Indonesia
Land Titling and Rural Transition in Vietnam
Direct Elicitation of Credit Constraints
| Citations per year | 0.75 |
|---|---|
| Citation span | 2018 - 2026 (9) |
| Highly cited | No |