Bank margins are increasing in the fourth quarter. For a loan with a 3-year maturity and a 50 percent loan-to-value ratio, the bank margin increases by 8 basis points, to 236 basis points. The bulk of new loans have a margin of 239 basis points, which has been stable since the third quarter. We have only recorded a higher bank margin in the bulk of new loans twice before.

The overall financing rate is 55 basis points lower in the fourth quarter. This is driven by a decline in long-term interest rates. Meanwhile, the 3-month NIBOR has stabilized at a high level. If opting for a floating interest rate, the total loan cost is slightly above seven percent.

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.