Our friends at American Banker posted some really interesting data today showing an increase in commercial & consumer loan pricing discipline over the last two quarters.

commercial banking graph

“…Loan pricing, which has been a challenge for banks of all sizes, seemed to reach an inflection point as the end of the third quarter neared. For the first time since December, index readings for both consumer loan pricing (50.1) and commercial loan pricing (50.7) indicated that banks showed more discipline negotiating with customers. Readings above 50 indicate a monthly improvement in lenders’ leverage with borrowers…”

This is certainly welcome news for an industry facing thinner and thinner margins in recent years. Let’s hope the trend continues and pricing discipline becomes the “new normal.”