Home loan arrears worsened in May 2012 compared with the previous month, but are better than in May 2011, data released yesterday by Moody's shows. Arrears of 90 days or more on prime home loans increased to 0.62 per cent in May, from 0.55 per cent in April, but fell from 0.69 per cent a year before. Arrears of 90 days or more on non-conforming home loans increased to 5.80 per cent in May, from 5.08 per cent in April, but fell from 6.26 per cent the previous year. A mild rise in the rate of growth of the supply of credit to businesses over recent months warranted a favourable mention in the monthly explanation from the Reserve Bank of Australia on its monetary policy decision. The RBA left the cash rate unchanged at 3.5 per cent. The RBA noted that "business credit has over the past six months recorded its strongest growth for several years." The RBA did not mention the comparatively low rate of growth in housing credit but did point out that dwelling prices "have firmed a little over the past couple of months". Queensland's premier, Campbell Newman, wants banks to lend more. "For the bankers that are here this evening you better start banking money because it's gotta happen," the Australian Financial Review quoted Newman saying at a recent property function. Newman told the newspaper: "They say they are lending but there are incredible hurdles you have to jump through… The outcome we want is not to fight with anyone but to encourage people to invest in Queensland."