National Australia Bank's impaired loans do not look so bad, on a peer comparison, now that ANZ has published its "pillar 3" disclosures for the September 2008 quarter.ANZ reported impaired loans of $2.7 billion at the end of the quarter, and equal to 0.5 per cent of credit exposures. NAB reported impaired loans of $2.1 billion, equal to 0.3 per cent of credit exposures.Of ANZ's impaired loans 80 per cent are corporate loans and partly reflect the troubled CDO obligations first highlighted by the bank early in the year and its own share of the subsequent, economy-wide credit stress, with one or two unique additions, such as the collapse of securities lender Opes Prime.Of ANZ's impaired loans the largest segment, $887 million, is in property services followed by $601 million to finance, investment and insurance.In the more than 90 days past due category an interesting feature is that wholesale trade, with $231 million in loans past due, is prominent (though still trailing personal loans).Also of interest in the ANZ disclosures is the level of aggregate credit exposure: at $570 billion this is greater than Commonwealth Bank (at $533 billion) and Westpac (at $435 billion). So, ANZ can rank itself as the second largest of the Australian banks. Blogger Andrew Reynolds at OzRisk yesterday wrote that ANZ's Basel II program looks to be the most advanced of the four majors, with less than 8.5 per cent of the book in the standardised category. He said this may be because ANZ has managed to get more of its "sovereign" and "other retail" loans into that category.