Further decline in lending spreads
Household credit demand increased slightly in 2026 Q2, while corporate demand remained broadly unchanged. Banks expect credit demand to remain approximately unchanged in both segments in Q3. As in the two preceding quarters, banks reported stronger competition and decline in lending spreads for both household and corporate loans. Banks expect competition in both segments to strengthen further in Q3 and a continued decline in corporate lending spreads.
- Series:
- Survey of Bank Lending
- Number:
- 2/2026
Households
Banks report slightly higher residential mortgage demand in 2026 Q2 (Chart 1). The increase was in line with banks' expectations (Chart 2). Demand for first-home mortgages and fixed-rate loans was broadly unchanged. Banks expect approximately unchanged residential mortgage demand in Q3.
Credit standards for households were approximately unchanged in Q2, and banks expect them to remain unchanged in Q3 (Chart 1).
Chart 1 Residential mortgage demand, credit standards and lending spreads
Chart 2 Household residential mortgage demand
As in the two preceding quarters, banks report that residential mortgage lending spreads fell somewhat in 2026 Q2 (Chart 3), somewhat more than they expected. Some banks expect lending spreads to fall further in Q3, while others expect an increase. Overall, lending spreads are expected to be broadly unchanged. Moreover, banks report broadly unchanged lending rates and somewhat higher funding costs for residential mortgages in Q2. Banks also report slightly stronger competition. Banks expect lending rates and funding costs to rise somewhat in Q3 and competition to strengthen slightly.
Chart 3 Banks’ lending rates, lending spreads and operating environment Residential mortgage loans
Corporates
For non-financial corporates, banks as a whole report approximately unchanged demand in 2026 Q2 (Chart 4). Credit line utilisation and demand for fixed-rate and commercial real estate (CRE) loans were also broadly unchanged. Banks expect broadly unchanged corporate credit demand in Q3. Moreover, banks report approximately unchanged credit standards for non-financial corporates in Q2 and expect no change in Q3.
Chart 4 Credit demand, credit standards and lending spreads. Lending to non-financial corporates
As a whole, banks report that corporate lending spreads fell somewhat in 2026 Q2 and expect spreads to fall somewhat further in Q3 (Chart 5). Banks have reported falling lending spreads since 2024 Q3 (Chart 4). Furthermore, banks report broadly unchanged lending rates and funding costs, which they expect will also remain broadly unchanged in Q3. As in previous quarters, banks report somewhat stronger competition in Q2 and expect a similar strengthening in Q3.
Chart 5 Banks’ lending rates, lending spreads and operating environment. Lending to non-financial corporates
Source - all charts: Norges Bank
In its work on monitoring financial stability in Norway, Norges Bank uses extensive statistics on developments in credit and financial markets. In order to expand the information base, Norges Bank conducts a quarterly survey of bank lending. The survey provides information on changes in the demand for and supply of credit and on changes in banks’ loan terms and conditions. Objective of the Bank Lending Survey