In circumstances where there are no means or possibilities of land registration, or a way for creditors to register their mortgage rights, credit becomes a very risky transaction in which the lender claims much higher interest rates if he decides to lend at all. Developed land registry systems should provide for “cheaper” credit for enterprises and consumers.
Real estate registration also has consequences with regards to financial reporting. If one enterprise has registered real estate property, its balance sheet will improve and so will their chances to provide adequate financing. From a historical perspective, it was not by chance that successful empires throughout history often had well-developed land registry systems.