The positive trend in the banking market has continued over the past quarter. Lending willingness among banks increased significantly in the first quarter, and all banks anticipate that lending appetite will remain strong going forward. 

In the second quarter, banks have on average reduced the margin by 12 basis points (bps) for a loan with a 3-year term and a 50 percent loan-to-value ratio (the standard case). The margin is now at 220 bps, down from 232 bps in the first quarter. 

The 5-year swap rate is approximately 0.3 percentage points higher than when the bank survey was conducted in the first quarter. Since the interest rate has risen slightly more than the bank margin has fallen, the overall loan rate has edged up slightly from the first quarter. Nonetheless, the main picture is that the borrowing cost remains at roughly the same level as in the first quarter.

Do you want to know more about the findings from the banking survey? Please contact Robert Nystad at nystad@union.no or 906 19 758.