In 2025 Q2, household credit demand increased somewhat, while corporate credit demand increased slightly. Banks expect a slight further increase in both corporate and household credit demand in Q3. Banks’ credit standards for households were broadly unchanged, following credit easing in Q1as a result of changes to the Lending Regulations. Banks report slightly lower lending rates and narrower lending spreads on corporate loans in Q2 and somewhat stronger competition for corporate loans. As in Q1, banks report slightly stronger competition for residential mortgages.^[1]

Households

Overall, banks^[2] report that demand for residential mortgages increased somewhat in 2025 Q2, more than expected in Q1 (Chart 1). Demand for first-home mortgages also increased more than expected, while demand for fixed-rate loans was broadly unchanged (Chart 2). Banks expect demand for residential mortgages to increase slightly in Q3 but expect demand for fixed-rate loans to remain broadly unchanged.

Credit standards for households were broadly unchanged in 2025 Q2 following credit easing in Q1 as a result of changes to the Lending Regulations. Banks expect credit standards to remain unchanged in Q3 as well (Chart 1).

Chart 1 Residential mortgage demand, credit standards and lending spreads

Chart 2 Household residential mortgage demand

Overall, banks report that lending rates for residential mortgages fell slightly in Q2, and banks expect lending rates to fall somewhat further in Q3 (Chart 3). Lending spreads were broadly unchanged, and banks expect approximately no change in Q3. Funding costs for residential mortgages fell slightly, and banks expect funding costs to fall slightly further in Q3. Banks report slightly stronger competition for residential mortgages, somewhat more than expected in Q1. Half of the banks also expect somewhat stronger competition in Q3.

Chart 3 Banks’ operating environment, lending spreads and lending rates. Residential mortgage loans

Corporates

Overall, banks^[3] report a slight increase in non-financial corporate credit demand in 2025 Q2 (Chart 4). They also expect a slight increase in non-financial corporate credit demand in Q3. Credit line utilisation, demand for fixed-rate loans and demand for CRE loans were broadly unchanged in Q2. Banks expect this to remain approximately unchanged in Q3. Overall, banks report unchanged credit standards in Q2 and also expect credit standards to remain unchanged in Q3.

Chart 4 Credit demand, credit standards and lending spreads. Lending to non-financial corporates

Banks report that both lending rates and lending spreads for loans to non-financial corporates fell slightly in Q2 (Chart 5). Lending rates fell slightly more than expected. Both lending rates and lending spreads are expected to fall further in Q3. Banks’ funding costs for loans to non-financial corporates were broadly unchanged in Q2. Overall, banks report slightly stricter regulation in Q2. This may relate to certain changes to the Capital Requirements Regulation (CRR III), which could have a limiting effect on some banks. Banks report somewhat increased competition for corporate loans in Q2 and expect this trend to continue in Q3.

Chart 5 Banks’ operating environment, lending rates and lending spreads. Lending to non-financial corporates

Footnotes

[1] Figures up to 2024 Q4 are based on responses from SpareBank 1 SR-Bank, from 2024 Q4, the figures are based on responses from SpareBank 1 Sør-Norge. Figures up to 2025 Q2 are based on responses from Sparebanken Vest and Sparebanken Sør, from 2025 Q2, the figures are based on responses from Sparebanken Norge. From 2024 Q4, Danske Bank is no longer included in the sample of banks reporting for the retail market.

[2] Mergers in the Norwegian banking market have led to an adjustment in the sample of banks participating in the Lending Survey with effect from 2025 Q2. See Objective of the Survey of Bank Lending.

[3] Mergers in the Norwegian banking market have led to an adjustment in the sample of banks participating in the Lending Survey with effect from 2025 Q2. See Objective of the Survey of Bank Lending.