Not really - there are set spawning areas, but the NPCs can get drawn halfway across the map chasing some peasants or something, so you can get river pirates with no river in sight, and so on.
It would be nice if the Swadian and Vaegir war parties actually invaded the enemy territories from time to time, though, off their own bat, without you having to lead them.
In the Mountain Territory between Swadia and Vaegir lands lie the Mountain Bandits (although they go a bit deeper into Vaegir land.
In the Khergit Territory lie the Steppe Bandits.
In the Northern Nord Territory (I think north...well its my north) Lie the Sea Bandits.
Forest Between Swadia and Rhodock lands lie the Forest Bandits
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