Does level increase spawn rate of bandits?

[FoeHammer]

Its getting outrageous, there is like 1000 of these parties around me. Is that normal late game or does the spawn rate increase with level?

[Alehkra]

I'm not sure about the spawn rates honestly, but in my experience bandits can become quite a problem if the kingdoms are constantly at war. During peacetime Lords seem a lot more likely to wander around bapping bandit parties, which they aren't doing if they're sieging a castle in another kingdom.

[Cheshire]

Looters, I am not sure of, but other bandit groups will continue to grow and gain more population and number of groups if the hideouts are left unchecked. Try scouting around, breaking down the hideouts and the larger groups, and you should see the overall number dropping.

As Alehkra said, the other lords won't attack bandit parties if they are in an army or at war usually, which becomes an almost constant thing after a while.

[The Mau Corporation]

Char progression (I think its related to renown) increases bandit group size. But as stated by the others, spawn rate and quality of bandit is all about hideouts and security.