Although the  New  Basel Capital Accord  (Basel II) makes  no  direct  reference  to loan   pricing and lending terms,  it is widely  held that  Basel II does, in fact, impact  on loan   pricing. A survey among Austrian banks on loan pricing strategies after Basel II aimed to  identify the  potential  effects of Basel  II  on  loan pricing.  This  article  summarizes and   analyzes the results of this survey and their implications for the Austrian lending business.  The survey found a significant trend toward risk-adequate pricing. While it is impossible to  predict at this point whether banks will eventually successfully implement this strategy,  given the competitive environment, it seems that they are in fact resolved to do. Banks’  loan pricing and portfolio streamlining plans concern mostly lending to small and medium- sized enterprises (SMEs), which in  credit institutions’  view offers the largest room for   maneuver to adjust lending volumes and prices.